The behind-the-scenes of the 45% drop in yearn.finance (YFI), one of the well-established names in the decentralized finance (DeFi) world, caused astonishment.
DeFi protocol belongs to yearn.finance YFI, 18 November with the decline of the day for 10 days broke the ongoing upward trend and given in 5 days He had gotten the snow back within hours. The short-term decline resulted in the liquidation of millions of dollars of futures positions.
On-chain data behind the decline of a single whale It was revealed that the price was down through serious manipulations.
by Lookonchain transmitted According to the details “0xCCb6” And “0xB017” wallets November 14 and November 15‘in decentralized exchange (DEX) to dYdX worth millions of dollars USD Coin (USDC) probably by depositing YFI long took the position.
These transactions increase the YFI price. 14 November‘from to November 17 average during the period 10 thousand dollarsfrom 16 thousand dollarsIt increased up to . When the dates point to November 17, it is thought to trigger the rise.0xB017” a string to the wallet address dYdX USDC made deposits and withdrawals. Lookonchain ensures that these transactions are long-directed. closing of positions He described it as a sign. After transactions made through many wallets, the whale short directional It was claimed that he took a position.
Then the price increased on November 18th. 45% It dropped to around 100,000 and millions of dollars were liquidated. However, this whale address attracted attention by withdrawing millions of dollars worth of USDC from dYdX after the drop in price. Lookonchain interpreted this last withdrawal as the whale’s profits from the short position.
The same whale with the “0xCCb6” wallet was recently Suhiswap (SUSHI) He caused price manipulation by opening a long position on it.
$9 million loss in dYdX insurance fund
dYdX following manipulation of millions of dollars by a single whale wallet insurance fund in shaken. DEX uses approximately 40% of the total insurance fund to cover the resulting liquidity gap. a loss of 9 million dollars stopped by. In dYdX’s insurance fund Balance of $13.5 million remained.
dYdX stated on its official social media account that this remaining fund is sufficient for all kinds of threats. specified:
Last night, approximately $9 million from the dYdX v3 insurance fund was used to fill gaps in liquidations processed on the YFI market. The V3 insurance fund remains well funded with $13.5 million remaining.
Making a statement on the subject, dYdX CEO said: Antonio Julianothe price manipulation carried out by the whale is clearly aimed at both dYdX and the entire YFI market. attack aspect described:
This was quite clearly an attack on dYdX, including market manipulation of the entire YFI market. We are investigating with several partners and will be transparent about what we discover.