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We have seen very specific attacks in the cryptocurrency markets, and some seemingly legitimate exploitation attempts are also defined as attacks. Improperly designed flows and limits in the DeFi sector, in particular, can cause millions of dollars in losses. The DYDX team took an important step in 10+ altcoins, learning from the recent incident.
DYDX News
Following the attack that shook the price of YFI Coin, the DYDX exchange took action against malicious crypto investors. It was announced on the official social media account that margin requirements affecting tokens such as Eos, 0x Protocol (ZRX), Aave, Algorand, ICP, XMR, XTZ, ZEC, Sushi, RUNE, SNX, ENJ, 1INCH, CELO, YFI, and UMA were increased.
DYDX, the largest derivatives exchange in the DeFi world, triggered its insurance fund to compensate users for their losses after a profitable operation aimed at liquidating long positions in the YFI token resulted in the liquidation of positions worth approximately $38 million.
dYdX founder Antonio Juliano described this as a “planned, targeted attack” on the exchange. According to him, the open interest of YFI on dYdX increased from $0.8 million to $67 million in the hands of the attacker. Juliano also stated that the same person had targeted SUSHI liquidity on dYdX a few weeks ago.
“We took action to increase the initial margin rates for $YFI before the price drop, but it was not enough. The speculator managed to withdraw a significant amount of $USDC from dYdX shortly before the price collapse. I want to announce that high-profit trading strategies are now banned on dYdX.”
Here, high-profit trading refers to Avraham Eisenberg, who swallowed Mango Markets liquidity in 2022.
DYDX Coin Review
The DYDX team has taken concrete steps towards transitioning to its own network and achieving full decentralization. While the results of this will be understood in the long run, it is a way for Antonio and his colleagues to avoid being collectively targeted in DeFi cases.
As for the price, the BTC drop certainly affected DYDX Coin investors, just like others. After exceeding $4, the altcoin is now finding buyers at $3.27. In the short term, closing above $3.43 will be supportive for continued upward movement. However, maintaining the psychological support at $3 is also positive. The target for a possible rally could be the peak of $5.24 seen in the week of April 18, 2022.
