Solana Based Defi Platform Accidentally Froze $661,000 USDC

OptiFi: $661,000 in USDC Permantly Frozen.

Derivatives-focused decentralized finance (DeFi) platform OptiFi closed its mainnet platform by accident, trapping $661,000 in USDC.

On August 29th at 06:00 UTC, OptiFi attempted to update its program code but instead used the “Solana program close” command by mistake, resulting in the permanent shutdown of the platform on the mainnet.

OptiFi’s program has been closed by mistakes we made.

TL;DR

1. We accidentally closed the OptiFi mainnet program and it’s not recoverable
2. 661k USDC is locked in the PDAs, luckily 95% of the fund is from our team member
3. We will compensate for all users’ funds

— OptiFi (@OptifiLabs) August 29, 2022

The team has acknowledged that they made a mistake in their official blog. The $661,000 lost in the accident belonged to the OptiFi team and investors. However, the team has vowed to refund all affected users in full.

In a blog post detailing the accident, OptiFi issued a public apology and outlined how the events unfolded. The platform is currently working on a solution to prevent similar accidents from occurring in the future.

Despite this setback, OptiFi remains committed to providing a safe and user-friendly platform for users to trade digital assets. The team is currently working on a plan to relaunch the mainnet soon.

For now, all user funds and open positions on OptiFi are locked in place and are not accessible. However, the team has said they will return all funds to affected users by September 2nd at 08:00 AM UTC. The team is also working on a solution to settle all user deposits and positions manually.

“We will return all users’ deposits and settle all user positions manually according to PythNetwork oracle at 8 AM UTC on Sep 2nd.”

OptiFi has also made changes to how they deploy updates in the future to prevent similar accidents from happening. Firstly, they will implement a peer-surveillance strategy, which necessitates the participation of at least three peers in the deployment process. Additionally, they would ensure every action conforms with the deposit contract’s state transitions.

Users who have questions or need assistance can contact the OptiFi team on their Discord channel.

The incident serves as a reminder of the importance of safety and security protocols in the DeFi space. It also highlights the need for platform providers to thoroughly test their code before making any changes to live platforms.

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