LUNA YIELD

DESCRIPTION OF EVENTS

"Luna Yield, a One-stop cross-chain DeFi solution, aiming to bring better DeFi performance and experiences to the end-users. Luna Yield’s products focus on delivering outstanding security, performance, and user experience to the DeFi space." "Our yield-optimizing vaults allow users to compound the yield from their crypto assets and LP tokens. Luna Vaults will automatically maximize user rewards from different liquidity pools by compounding arbitrary yield farm reward tokens back into the initially deposited asset. Luna Vaults runs on both Solana and Binance Smart Chain, automatically optimize yield from both."

"Luna Yield was originally built on the Solana blockchain due to the speed and reduced costs that it promises. However, with time Luna Yield has now incorporated other chains such as Polygon, Ethereum, and Polygon Binance Smart Chain on top of Solana and benefit from the features that every chain provides. Luna Yield is open source and fully decentralized to help end-users leverage on profits while using decentralized finance across different platforms." "Powered by Polygon, Solana, Ethereum, and Binance Smart Chain, Luna Yield is fully decentralized and open-source, helping users to leverage their assets across platforms."

"The Luna Yield team was anonymous."

"The world of defi has reportedly seen another rug pull but this time in the Solana blockchain ecosystem, according to numerous reports. Solana’s website that had a page dedicated to describing the Luna Yield decentralized exchange (dex) aggregator protocol now shows a 404 error. The aggregator project promised high yields and then suddenly the platform went dark and users could not access the funds locked into the dex aggregator."

"A decentralized finance (defi) project that utilizes the Solana blockchain called Luna Yield has allegedly committed a “rug pull,” according to various individuals on social media. Reports indicate that the investors who put funds into the project lost an estimated $6.7 million according to an “anonymous source.”"

"The platform that helped launch the Luna Yield IDO, Solpad detailed that the project would help compensate IDO participants who were affected. “After internal discussion within Solpad Foundation, we have finalized the compensation plan for Luna Yield IDO participants,” the team tweeted. “We will sort out the list and directly [distribute] the compensation into the participant’s wallet (the same wallet that joined the IDO on August 16th. We will compensate users in USDC, with a value equal to 60% of the purchased amount.”"

"For example, if user A bought 400 USDC of allocation in the round, he will get 400*60% = 240 USDC, airdrop directly user A wallet. The distribution will start next week, and we expect it to finish within a few days. Thank you so much for being so patient with us."

"The refunding process for Luna Yield IDO's participants is now finished. Please check your wallet, and if you haven't received the 60% remaining USDC, don't hesitate to get in touch with us. Thank you for your trust and patient."

Luna Yield was another yield optimizing service, where users provided liquidity in a smart contract hot wallet. After the smart contract was exploited, the anonymous team provided affected users 60% of their invested USDC back. Social media accounts were also deleted.

HOW COULD THIS HAVE BEEN PREVENTED?

The only truly secure storage of assets is an offline multi-sig wallet. Protocols run by known teams could explore options where most funds are in cold storage when not in use. In the future, it's very likely that insurance protocols will reduce some of the risk.

Check Our Framework For Safe Secure Exchange Platforms

Solana-Based Defi Protocol Luna Yield Reportedly 'Rug Pulls' Investors, $6.7 Million Taken – Defi Bitcoin News (Aug 21)
The Second Launchpad Project Luna Yield (Aug 21)
Luna Yield IDO on Moon Launch - Smart Liquidity Network (Aug 21)
Luna Yield - The One-Stop Cross-Chain Defi solution - Solana Zone (Aug 21)
@FinanceSolpad Twitter (Sep 20)

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