Solana-based OptiFi Accidentally Loses $660k, Here’s How

On August 29th, Solana-based decentralized exchange (DEx), OptiFi accidentally closed its mainnet program. Unfortunately, the program was non-recoverable. The exchange lost $661,000 of users’ money in shutting down the program. Luckily, most of the funds belonged to the team, and only 5% belonged to investors. Nonetheless, the exchange has promised a full refund to all affected users.

The firm has since issued a public apology, outlining how the events unfolded. The amount lost was in the form of stablecoin USDC.

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

Why did the Solana-based firm close its mainnet program?

According to an official blog, on August 29th at 06:00 UTC, OptiFi had an update on their Solana program code. While updating the code, the team accidentally used the “Solana program close” command, leading to the mainnet shutting down.

Per the official announcement, all user funds and open positions on OptiFi, totaling $661K (AMM vault, user account, etc.), are locked in PDAs and are not retrievable.

However, the firm said they would return all funds on September 2nd, 08:00 AM UTC. User deposits and positions will be manually settled according to Pyth.

3/n
We will return all users’ deposits and settle all user positions manually according to @PythNetwork oracle at 8 AM UTC on Sep 2nd.
All transactions/deposits will be based on Solscan. Head to our discord if you need any assistance, we will be there. https://t.co/VJQUk3IZUj

— OptiFi (@OptifiLabs) August 29, 2022

The Solana-based platform has asked users to head to their Discord if they need any assistance.

Additionally, the team has acknowledged that they made a mistake. In their official blog, they have urged DeFi projects not to rush as they did. The team has also made changes to how they plan on deploying updates in the future.

Firstly, they will implement a peer-surveillance strategy, which necessitates the participation of at least three peers in the deployment process. Additionally, they would ensure every action conforms with the deployment norms and guidelines while reminding the primary deployer of potential risks.

The team also said they would remain calm if anything unusual occurred during the deployment. Moreover, they said they would consult with peers to ensure the safety of each operation.

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