Luna Yield Rug Pull

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Luna Yield

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.

This is a global/international case not involving a specific country.

About Luna Yield

"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."

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

• Known history of when and how the service was started.
• What problems does the company or service claim to solve?
• What marketing materials were used by the firm or business?
• Audits performed, and excerpts that may have been included.
• Business registration documents shown (fake or legitimate).
• How were people recruited to participate?
• Public warnings and announcements prior to the event.

Don't Include:

• Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
• Anything that wasn't reasonably knowable at the time of the event.

There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

• When the service was actually started (if different than the "official story").
• Who actually ran a service and their own personal history.
• How the service was structured behind the scenes. (For example, there was no "trading bot".)
• Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - Luna Yield Rug Pull

Date	Event	Description
August 21st, 2021	Main Event	Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

Technical Details

This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

Total Amount Lost

The total amount lost has been estimated at $6,700,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

General Prevention Policies

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.

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.