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

Paigambar Mohan Raj
Source: Armina Mkhitaryan, Medium

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.

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.

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.