dYdX said it had made important changes to protect the v4 open-source software from hackers.
The dYdX DeFi platform found the person who hacked their v3 platform last November. The platform lets people trade cryptocurrency.
On January 3, 2024, the decentralized exchange (DEX) found out who the hacker was with the help of its security team, partners, forensics contractors, and other companies that investigate things.
“DYDX was used to steal $9 million”
On November 17, 2023, the system had a big problem and $9 million was stolen. At that time, the exchange said that the attack was aimed at the DEX.
But according to the company’s Twitter team, the attackers got into the v3 insurance fund, which was used to help with financial processes in Yearn. The finance market went down and the YFI token dropped by 43% on the same day. The hackers were able to buy a lot of YFI tokens on dYdX and sell them for nearly $38 million.
In a report released on Wednesday, the exchange said it has put safety measures in place to stop bad people from attacking the dYdX v3 platform in the future.
dYdX made changes to how it sets aside money for trading in markets where there are not as many buyers and sellers. The exchange will change the initial margin fraction if there is unusual activity. This will impact the ability to take out money that hasn’t been made yet, but not the prices for selling assets.
The DEX has added better ways to keep track of and alert about open positions, especially over a long time, to keep the protocol safe from cyber criminals.
The company said that these steps will make it harder for others to use the same plan to make risky bets, control prices, take profits, and do it again.
dYdX might sue the hackers.
On dYdX Chain, the exchange said it had added new safety measures to protect the v4 open-source software from attackers.
These changes include a new way to sell assets quickly, using data to decide when to trade, adjusting how much you can borrow, and adding tools to reduce risk.
In addition to making the platform safer, the exchange has also worked with experts who investigate blockchain activity to help find and stop people who are using the platform for illegal or dishonest activities.
dYdX has found the hacker and is now working with the police to investigate the hack. The exchange may sue the attackers.
dYdX is helping the police with their investigation and looking at all the legal choices they have. dYdX will take legal action if it thinks it’s necessary in this situation,” the company said.