DYDX

DESCRIPTION OF EVENTS

"Perpetuals, decentralized." "Trade Perpetual Contracts with low fees, deep liquidity, and up to 25× more Buying Power. Deposit just $10 to get started."

"We built the fastest and most powerful decentralized exchange ever." "Once you deposit to Layer 2, you will no longer pay fees to miners for each transaction." "Trades are executed instantly and confirmed on the blockchain within hours." "Unlike other platforms, there is no wait required to withdraw your funds from Layer 2." "We've redesigned our exchange from the ground up, so you can use it from any device." "StarkWare's Layer 2 solution provides increased security & privacy via zero-knowledge rollups." "Access leverage across positions in multiple markets from a single account."

"During the deployment of the upgradeable smart contract, the dYdX security module made an error, which caused the ratio of DYDX to stkDYDX to change from 1 to 0, so that users who pledged DYDX did not receive stkDYDX. dYdX stated that the error was caused by an error in the smart contract deployment process. It believed that there was no error in the code itself. The security module was previously audited by the smart contract, and based on the liquidity module design, the design was also audited. The security module is thoroughly tested before deployment."

"Twitter netizen "mhonkasalo" stated that there was a bug in the dYdX pledge contract. The user received 0 stkDYDX when pledged, the front end was disabled, and there were 64 affected addresses."

"There's a bug in the dYdX staking contract (users receiving 0 stkDYDX in return for staking)." "Frontend is now disabled."

"[T]heres probably a reimbursement incoming for those affected, its only 153,611 DYDX"

"Later, dYdX released the "Pledge Contract Bug" incident report."

"After the Safety Staking Pool launch, we discovered an error in the deployment process for the Safety Staking Pool smart contract. In response, access to the Safety Pool was temporarily removed."

"The error will necessitate a smart contract upgrade to be passed through a DYDX governance vote during the first epoch. The team is working on open sourcing a fix for the contract that the community can choose to deploy."

"The design of the Safety Staking Pool included deposits being locked for a minimum of 1 epoch (28 days). Assuming an upgrade proposal can be passed within the next week, no user impact will have occurred, & the few early stakers will still be able to withdraw their funds on time."

"Governance may also decide if or how to compensate the few early stakers for the rewards they should have received. No compensation for deposited funds should be necessary as the funds are not at risk."

"As always, all our smart contracts adhere to the highest security standards: 100% test coverage and full audits. We will be sharing a full post-mortem soon, and look forward to working with the community to resolve the situation with no user impact."

"At present, user funds are safely locked in the security module until the end of the 28-day epoch, and no security module rewards are distributed and no withdrawals are possible. In order to restore the contract function, an upgrade is required. The suggested solution is to restore the security module function, allow the pledged user to retrieve the funds, and compensate the user for the wrong reward for participating in the security module."

"No user funds are at risk. All funds are recoverable."

The audited dYdX contract was launched with an incorrect ratio, which prevented users from performing withdrawals as anticipated. Funds were locked in the smart contract, and all are recoverable.

SlowMist Hacked - SlowMist Zone (Jun 26)
@mhonkasalo Twitter (Dec 6)
@dydxfoundation Twitter (Dec 6)
Commonwealth (Dec 6)
InitializableAdminUpgradeabilityProxy | 0x65f7ba4ec257af7c55fd5854e5f6356bbd0fb8ec (Dec 11)

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