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OptiFi: Solana-based DEX loses $661,000 due to programming error

OptiFi
TL;DR Breakdown
  • The OptiFi team said they permanently closed the OptiFi program due to an accidental mistake.
  • The shutdown of the program caused a loss of about $661,000.
  • OptiFi team has promised that they will compensate the users for their losses.

Routine updates prove fatal sometimes, which is why developers check updates to programs regularly. Sometimes a small error causes a big loss to the whole system. The same happened with Solana-based DEX, OptiFi, which lost more than $661,000 due to a programming error.

According to the available updates, the system came to an abrupt halt as a result of accidental closure. The development team saw an error, and later, their commands unintentionally shut down the mainnet of the program. The said error led to the locking of all funds in the mainnet, which couldn’t be accessed. Later, their team confirmed that the said DEX is no more accessible.

Here is a brief overview of the problem that the Solana-based program OptiFi faced and its repercussions of it.

Routine updates to OptiFi and errors

OptiFi was set for a routine update as the development team was working on rolling out the upgrades. The developers made an expensive blunder, which later led to the announcement that the DEX had been closed. The error led to a huge amount of USDC being locked. OptiFi is a decentralized exchange that allows users to trade options.

The postmortem says that the team attempted to upgrade the protocol on 29 August. The operation took time longer than expected and was aborted due to unnecessary delay. Soon they came to know that the process was going in the right direction as a buffer had been created. Also, OptiFi had transferred about 17.02 SOL, which the team tried to revert. The reversal of the process was aimed at retrieving the SOL tokens.

Their maneuver was successful but couldn’t bring any good; rather, it was revealed that the program had been shut down permanently. The postmortem report says the reason for the loss and permanent shutdown of the program is the ‘Solana program close’ command. The developers requested Solana documentation to inform users of the possible problem.

Losses caused due to error

As the OptiFi program has been shut down, it has caused great damage. According to the available information, 95% of the funds belonged to team members. While the losses of the users will be reimbursed soon. The time frame given for the reimbursement of funds is approximately two weeks. The team also announced that the participants of the OptiFi AMM contest have remained unaffected, and the winners will be announced on 5 September.

The OptiFi team has taken complete responsibility for losses. They also said that every deployment needs a rigorous process, and their example will be of help to other developers. The estimates of their losses show that the locked amount is about $661,000. The said example shows that DeFi projects shouldn’t rush to conclusions.

As the funds are irretrievable, the developers will bear all losses. Though there are rug pulls and other risks related to DeFi projects but this loss is one of the unique loss incidents. The mentioned loss will help ensure proper SOPs for the deployment of code in DeFi projects.

Conclusion

Solana-based DEX DeFi project, OptiFi, has seen a huge loss because of an error in implementing code. The said change came as the result of problems in the completion of the process. As the developers halted the process, it led to subsequent errors, resulting in the loss of a huge amount in USDC. The available details show that an amount of $661,000 in USDC has been locked permanently in the protocol.

Haseeb Shaheen

Haseeb Shaheen

As a Web Researcher and Internet Marketer, Haseeb Shaheen delivers relevant valuable content for audiences. He focuses on financial and crypto market analysis, as well as technology-related areas that help people change their lives.

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