{"id":87233,"date":"2023-11-19T10:57:05","date_gmt":"2023-11-19T08:57:05","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=87233"},"modified":"2025-09-13T10:28:42","modified_gmt":"2025-09-13T07:28:42","slug":"dydx-loses-9-million-in-what-is-described-as-a-targeted-attack","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/dydx-loses-9-million-in-what-is-described-as-a-targeted-attack\/","title":{"rendered":"dYdX loses $9 million in what is described as a targeted attack"},"content":{"rendered":"<p>On November 17, around $9 million from the decentralised insurance fund of the dYdX derivatives exchange were used to cover liquidations of user positions in the Yearn Finance (YFI) market.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Last night about $9m from the dYdX v3 insurance fund were used to fill gaps on liquidations processed in the YFI market. The v3 insurance fund remains well funded with $13.5m in funds remaining<\/p>\n<p>No user funds were affected and our team is working to investigate the event<\/p>\n<p>\u2014 dYdX (@dYdX) <a href=\"https:\/\/twitter.com\/dYdX\/status\/1725921897848914353?ref_src=twsrc%5Etfw\">November 18, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The team said the fund, with a balance of $13.5m, remains well funded and user funds were not affected; an investigation is underway.<\/p>\n<p>According to founder and CEO Antonio Juliano, losses stemmed from a targeted attack on the exchange that included manipulation of the entire $YFI market.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">This was pretty clearly a targeted attack against dYdX, including market manipulation of the entire <a href=\"https:\/\/twitter.com\/search?q=%24YFI&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$YFI<\/a> market<\/p>\n<p>We are investigating alongside several partners and will be transparent with what we discover <a href=\"https:\/\/t.co\/djWHaaPIua\">https:\/\/t.co\/djWHaaPIua<\/a><\/p>\n<p>\u2014 Antonio | dYdX (@AntonioMJuliano) <a href=\"https:\/\/twitter.com\/AntonioMJuliano\/status\/1725926693440045389?ref_src=twsrc%5Etfw\">November 18, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>We are conducting the investigation with several partners and will be transparent about what we find, he added.<\/p>\n<\/blockquote>\n<p>Arkham Intelligence researchers noted that the previous day&#8217;s roughly 40% drop in YFI price led to $50 million of liquidations on dYdX.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">YFI\u2019s price collapsed by almost 40% last night.<\/p>\n<p>As this occurred, $50M of YFI Open Interest on dYdX was wiped out. Before that, dYdX made up almost half of the total open interest on YFI. <a href=\"https:\/\/t.co\/qZBDOeELGX\">pic.twitter.com\/qZBDOeELGX<\/a><\/p>\n<p>\u2014 Arkham (@ArkhamIntel) <a href=\"https:\/\/twitter.com\/ArkhamIntel\/status\/1725841277818646892?ref_src=twsrc%5Etfw\">November 18, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Experts noted that YFI typically trades infrequently on dYdX; however, a sharp price spike in recent days pushed open interest to a peak of $60m \u2014 roughly half of the asset\u2019s total open interest.<\/p>\n<p>Juliano confirmed the findings. He said the attack was carried out by well-capitalised actors intent on draining the insurance fund. Two weeks earlier, a similar attempt to manipulate the SUSHI market had been attempted; this time they withdrew a substantial amount in USDC before the price decline, the exchange\u2019s chief executive said.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Here are the main points we know about the <a href=\"https:\/\/twitter.com\/search?q=%24YFI&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$YFI<\/a> incident on dYdX so far:<\/p>\n<p>Reminder no user funds have been lost, but it is critical we understand what happened and adjust accordingly<\/p>\n<p>\u2014 in the part few days <a href=\"https:\/\/twitter.com\/search?q=%24YFI&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$YFI<\/a> open interest on dYdX spiked from $0.8m -> $67m<br \/>\u2014 basically all of\u2026<\/p>\n<p>\u2014 Antonio | dYdX (@AntonioMJuliano) <a href=\"https:\/\/twitter.com\/AntonioMJuliano\/status\/1725976971245469807?ref_src=twsrc%5Etfw\">November 18, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>As a precaution against potential future incidents, the dYdX team raised the initial margin requirements for several low-liquidity tokens, such as EOS, RUNE, AAVE and YFI.<\/p>\n<p>Earlier, on November 13 the platform <a href=\"https:\/\/forklog.com\/en\/news\/dydx-chain-launches-beta-testing-on-33-markets\">launched<\/a> to test the beta version of the main L1 network dYdX Chain based on <a href=\"https:\/\/forklog.com\/en\/news\/what-is-cosmos-atom\">Cosmos<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On November 17, around $9 million from the dYdX decentralised insurance fund were used to cover user liquidations in the Yearn Finance (YFI) market.<\/p>\n","protected":false},"author":1,"featured_media":87234,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1093,787,1337],"class_list":["post-87233","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-defi","tag-dex","tag-dydx"],"aioseo_notices":[],"amp_enabled":true,"views":"28","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/87233","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=87233"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/87233\/revisions"}],"predecessor-version":[{"id":87235,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/87233\/revisions\/87235"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/87234"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=87233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=87233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=87233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}