DAFI PROFOCOL

DESCRIPTION OF EVENTS

"DAFI is building an entirely new incentive model for every protocol & application. Today, everything decentralized relies on inflation, an example is miners earning Bitcoin in return for maintaining the Blockchain. Incentives are the core DNA of everything decentralized - without it nothing can truly scale. DAFI creates limitless applications with reduced inflation, by replacing simple token rewards with dTokens. As a network grows in demand, dTokens distributed to users can increase in quantity. Essentially, DAFI converts demand volatility into user rewards. This enables you to truly become a part of the economies you love."

"DAFI reinvents every network within the blockchain space by minimizing the effects of low demand. Super Staking uses dTokens as a rewards mechanism that significantly reduces the number of native tokens released into circulation." "Every decentralized network can now maximize reward distributions based on their demand. Creating limitless applications that support reduced inflation & user growth."

"Galaxy-class developers, academics, and industry experts building on the DAFI thesis, dedicated to reshape the current inflation model inspired by the 2018 market flaws."

"At DAFI Protocol, we continue to expand the utility of our state-of-the-art smart synthetics technology to solve one of the biggest challenges in the blockchain industry, hyperinflation. With the launch of Super Staking, a new realm of possibilities are opening up to finally convert market-demand volatility into user rewards."

"While market participants rush to ‘Super Stake’ their $DAFI tokens, more decentralized networks have ‘Switched to DAFI.’ We have also launched a liquidity program to allow Dafinauts to easily trade with a comfortable market liquidity."

"After months upon months of hard work and dedication, we have finally launched Super Staking. The new platform can be thought of as Staking 2.0, where users receive dTokens rewards for their locked up holdings, which grow alongside the network."

"DAFI Protocol, via its official Twitter handle, disclosed the exploitation of its ChainSwap Bridge by unknown hackers." "According to official sources, DAFI Protocol, an on-chain incentive protocol, stated that DAFI worth 200,000 US dollars was sold due to the “cross-chain asset bridge ChainSwap attack”. DAFI Protocol requests the community to withdraw liquidity from Uniswap and LP plans until further notice. DAFI Protocol added that the DAFI token contract and Super Staking are safe."

"As a result of the hack, $200,000 DAFI was stolen, and the token has slumped by 22.8% in the last 24 hours."

"Despite this, in the last month alone we have launched Super Staking and achieved record-breaking value locked within the first week. We will continue to get stronger, this will not slow us down."

"The recent ChainSwap hack which resulted in the loss of about $200,000 in DAFI tokens had no effect on DAFI’s Super Staking. However, to protect DAFI’s community members’ interest and also to bear the brunt of the stolen tokens, DAFI has disclosed plans to commence a token buyback event." "The buyback will take place on the open market for six months. It is also important to point out that, despite the hack, DAFI has been growing stronger with several amazing milestone achievements."

"The DAFI token contracts and Super Staking are safe. We're as strong ever despite the exploit of a third party. To show our commitment, we will be performing a buyback on the open market and vesting the $DAFI for 6 months."

The DAFI protocol smart contract for cross-chain swapping had a vulnerability, which allowed $200,000 to be removed.

The protocol has agreed to a buyback to reimburse those affected.

HOW COULD THIS HAVE BEEN PREVENTED?

All smart contracts are hot wallets which may contain vulnerabilities.

The most secure method of storage for crypto-assets is an offline multi-signature wallet.

Check Our Framework For Safe Secure Exchange Platforms

SlowMist Hacked - SlowMist Zone (May 18)
Dafi - Rewarding Networks (Aug 19)
DAFI Protocol - DAFI Protocol (Aug 19)
DAFI Protocol to Commence Buyback After ChainSwap Bridge Hack (Aug 19)
@DafiProtocol Twitter (Aug 19)
Dafi Protocol Suffers Exploit, Loses $200,000 (Aug 19)
Dtransparency Report 3 (Aug 19)
Chainswap Black Sunday, over 20 DEFI projects were stolen - 律动BlockBeats (Aug 24)

More case studies

AnySwap ECDSA
Exploit

DeFiPie Nested
Borrows