dYdX avoids the $ 2 million catastrophe thanks to white hat

Increased privacy and individual currency sovereignty are some of the key benefits that have made decentralized exchanges (DEXs) so popular recently. Unfortunately, there are a number of security risks associated with using a DEX.

dYdX avoids an accident

Right now, the dYdX decentralized exchange is very hot, although there is no exact reason. It is a non-custody decentralized exchange that allows users to trade through smart Ethereum contracts. Just recently, the daily trading volume on the platform grew to almost $ 10 billion, surpassing the daily volume of Coinbase and Uniswap.

However, a new development could influence this impressive increase. According to the news, the protocol just closed a security hole before it could be exploited. Team too exchange about it in a series of tweets.

The dYdX team warns people about the security problem in a newly deployed smart contract. One of the tweets above called:

“At 12:21 pm on November 27th. (UTC) the dYdX team was made aware of a security problem in a newly provided smart contract. If you allowed deposits to be made at http://trade.dydx.exchange on Wednesday, November 24th, read on for important recovery information. Nobody loses money and all money is safe. “

Meanwhile the team too warning User:

“All users who from Wednesday, November 24. Having allowed deposits should visit the exchange and withdraw their funds as soon as possible. The funds are not at risk, but have to be returned to your wallet. “

The recovery process was coordinated with someone named Samczsun and the dYdX team, which saved any potentially damaged funds.

The source: Twitter

During the White Hat recovery, affected funds were diverted to 700 accounts (approximately $ 2 million) for smart contracts to be deposited. These funds come from accounts that cannot deposit into dYdX. However, to ensure security, only the user’s wallet has access to withdraw funds.

“Don’t lose any money”

The operators of the protocol also advise users to avoid money transfers until the team asks.

dYdX tweet:

“As soon as you have completed the recovery steps at http://trade.dydx.exchange, your wallet is safe and usable.”

Other users who do not allow deposits to be made to the dYdX Layer 2 Perpetuals product are not affected.

In the meantime, the gas fee savings and 0x-swap integration have been deactivated until further notice. The team concluded:

“A longer tweet with more information will be posted once the affected users have a chance to recover. A full incident report will be released shortly. “

At the time of writing, DYDX is trading in the red, falling below $ 13 with a correction of nearly 7% over the past 24 hours.

In early August, the price of this altcoin also had a similar impact.

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