SafeDollar Stablecoin Drops to $ 0 Following $ 248,000 DeFi Exploit on Polygon
The price of SafeDollar (SDO), an algorithmic decentralized finance (DeFi) stablecoin based on the Polygon blockchain (MATIC), has plummeted to literally zero as a result of what appears to be an exploit today.
Although details are still scarce, Polygonscan explorer block shows that 202,000 USDC and 46,000 USDT stablecoins were suddenly drained from smart contract today, the value of SDO around $ 248,000 in total.
As a result, the price of SafeDollar, which was supposed to always equal $ 1 since it's a stablecoin, has plummeted to zero, according to the protocol's own website.
Stablecoins are a special type of cryptocurrency tokens that are pegged to certain fiat currencies, usually the US dollar. They are designed to always retain the value of their corresponding assets and should, in theory, always be negotiable or redeemable in a one-to-one ratio.
In the case of SafeDollar, the stablecoin uses a combination of "unique seigniorage characteristics, deflation protocol and synthetic assets" as its basis.
SafeDollar takes protective measures
The attack was also confirmed today on a Telegram channel called "SafeDollar Announcements", where the developers urged users to stop all operations with SDO and apparently promised to come up with a compensation plan in the future.
“SafeDollar has been attacked. We have stopped SafeDollar activities and investigated the matter. IMPORTANT: STOP ALL $ SDO RELATED OPERATIONS. We will announce the autopsy after the investigation carried out with the compensation plan for Liquidity Providers ”, said the announcement.
In particular, this is not even the first time SDO has been exploited. Just a week ago, SafeDollar developers published a “Post-mortem Analysis” on an exploit that resulted in the loss of the protocol's 9,959 SDS tokens, worth around $ 95,000 at the time.
As reported Crypto report On June 17, Iron Finance, another DeFi project currently migrating to Polygon, saw the price of its Iron Titanium (TITAN) token plummet by 99% after an exploit.
