Attack on dYdX Exchange

An unknown individual targeted the dYdX exchange and its YFI token on November 17. This follows a similar attempt on the exchange’s SUSHI market 2 weeks earlier.

Impact of the Trades

These trades were classified as an attack, causing open interest to surge by over $66 million and resulted in $9 million of its insurance fund being burned. No user funds were affected, and measures have been implemented to prevent further attacks.

Preventative Measures

Initial margin requirements for trades of “less liquid” tokens will increase until further notice. The platform has also increased margin requirements for less liquid markets.

dYdX Considers the Event an Attack

Trades targeting long positions on the exchange are considered an attack. The dYdX Founder, Antonio M. Juliano, stated that the team is working with the FBI to find the culprit.

No bounties will be given out to the attacker, and dYdX has banned all highly profitable trading strategies on the platform.

It is unclear how profitable a trade can be before an account gets shut down.

### News source:

See also  HK FinTech Week 2023: "Fintech Redefined"

By Team