OptiFi : Error on Solana costs $661,000 lost forever

Decentralized crypto-exchange OptiFi mistakenly permanently disabled its main network on solana, forever losing access to $661,000 in USDC stablecoins.

95% of the lost belonged to a member of the OptiFi team

Handling DeFi protocols requires caution and expertise. A mistake is still possible, in addition to unforeseen side effects as some fear in the context of the migration to the new version of Ethereum.

OptiFi is not affected by the upcoming ETH network merger, however. It is indeed a protocol built on the Solana blockchain. Its developers will nevertheless be more vigilant in the future.

OptiFi is a decentralized exchange (DEX) specializing in leveraged crypto-derivatives trading.

In a post on Twitter, the Solana blockchain-based decentralized financial protocol (SOL) team confirmed the permanent shutdown of the main OptiFi network:

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

In other words, the program of the platform specializing in derivatives was indeed accidentally closed on the mainnet Solana. This episode resulted in a loss of $661,000 in stablecoin USDC, 95% of which belonged to a member of the OptiFi team. The protocol has already pledged to refund other affected users within 2 weeks.

OptiFi nevertheless apologizes and details the reasons that led to this loss. Thus, it is the update of the program’s code on Solana that led to this expensive failure.

This mistake and its media coverage could benefit other Solana developers in the future. OptiFi warns them and encourages them to handle the “solana program close” command with care.

The DeFi protocol also calls on Solana developers to include a warning message in the documentation and command line interface (CLI) to help developers understand the offending function… and especially its risks. A weapon of mass destruction deserves a few warnings.

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Article written by: Laeti Marison (SatoshiBelle)

Laeti Marison, also known as SatoshiBelle, is a multifaceted professional with a passion for community management, content creation, and digital marketing. With a diverse background in various roles, Laeti has consistently demonstrated her expertise and dedication in the field. Recognizing her potential, Laeti then took on the responsibilities of a Project and Community Manager at Magna Numeris and Cartam from November 2018 to March 2021. In this role, she showcased her ability to successfully lead projects and foster strong relationships within the community. Currently, Laeti serves as an SEO content writer, Digital Marketing Manager, and co-founder at Trendingcrypto.news magazine, starting from February 2022 till now. Through her expertise in digital marketing and her passion for the crypto industry, she has contributed to the success of the magazine, ensuring its content remains relevant, engaging, and informative.