Andre Cronje Denies Solid Security, DeFi Protocol TVL Hits $2.24 Billion

Andre Cronje denied the bug allegations in his new DeFi project called Solidly on February 27. It is claimed that the bug caused users’ funds to “fly away” from the liquidity pools.

Andre Cronje – Founder of Solidly

This came as the protocol accumulated $2.24 billion in total value (TVL) in the 72 hours after its launch.

Users have complained about a vulnerability in Solidly Exchange smart contracts that led to the loss of funds in liquidity pools.

Example: User NiQlaus explain lost $21,000 in FTM on an exchange.

“I lost all my money in a transaction with Solidly. When the transaction went through, it returned 0.01% of what I should have received.

It looks like the exchange chose a stable liquidity pool (LP) with no liquidity while having another variable LP with full liquidity. This means that there is no LP liquidity check as AMM (Market Maker) automatically selects stable or floating LP with no user intervention required.”

Another person called They lost about $24,000 after a bot swap attempt between stablecoin USDC and FTM.

Don’t lose money

Andre Cronje, the famous DeFi architect behind the founding of Yearn Finance and Keep3rV1, says that “no money will disappear” from Solidly’s liquidity pools.

“The smart contract error was not identified in any of the live contracts.”

Regarding the NiQlaus incident, Cronje claimed:

“That was the only thing that happened, and it was because the user didn’t confirm the results received. They then trade across low liquidity pools. It’s not about losing money in liquidity pools. These are simply users who trade illiquid pairs. Again, this is not a question of protocol.”

What is solid

Officially launched on February 24th as AMM on the Fantom blockchain, a method that allows traders to trade without an order book as a source of liquidity.

Solidly’s fundamental goal is that Cronje aims to create a more efficient token ecosystem that pays 100% of the fees to those who lock up their assets and is more sustainable over time. This project is not driven by liquidity providers, as is currently the case with DeFi, but by protocols.

Solidly uses an escrow token economy that combines the token rebase mechanism of Olympus DAO and tokens from protocols like Convex, Curve. With token rebase, investors are free to redeem their tokens, list them, and sell them on the open market — something that tends to increase supply and drive prices down.

Cronje says this should not be encouraged. Instead, incentives should be paid to users who have locked their tokens. What better way than making the locked tokens into NFTs that can be sold on the secondary markets?

These tokens provide voting rights, and the more governance tokens the protocol has, the more power it has. Liquidity providers are paid in the form of a token called SOLID.

The platform enables some of the lowest fees when swapping between assets in the DeFi sector. Investors have been eagerly awaiting the launch of Solidly since Cronje first hinted at the project in early January, and have been engaged since it went live last Thursday.

At the time of writing, Solidly has amassed more than $2.24 billion in total committed value – essentially the total assets the protocol manages – according to Data by DeFiLlama.

No big deal

Brian Pasfield, Fringe Finance’s chief technology officer for decentralized FX markets, says that while the Solidly launch event comes with “both positive and negative highlights,” it’s not surprising.

“It’s a trend that marks the emergence of a number of creative projects. The team behind the project can clearly understand and implement the security processes in the blockchain space. As a result, they know well when it comes to full testing before starting a protocol.

Again, this shows that security remains DeFi’s top priority. We can and should create incredible financial opportunities, but never at the expense of our users.”

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