SafeDollar News: An attack was carried out on the SafeDollar protocol by exploiting the vulnerabilities in the system. According to the statement made as a result of the attack, the value of SafeDollar decreased to zero.
According to the statement, an attack took place on the Polygon-based SafeDollar protocol by exploiting the vulnerability in the system. Thus, a new DeFi protocol has been added to the DeFi protocols that have lost their value on Polygon.
According to the contract address on the Polygon Scan dashboard, on June 28, the SafeDollar (SDO) stablecoin dropped to zero as $248 million in USDC and Tether (USDT) was withdrawn from the protocol.
SDO is an algorithmic stablecoin that combines the unique features of seigniorage, deflation protocol and synthetic assets. Earlier this month, the protocol airdropped $100,000 of pegged SDO stablecoins to a number of DeFi communities, including bDollar, Iron Finance, MidasDollar, Safemoon, and Quick swap.
A warning message was sent from the Telegram channel of the protocol regarding the attack. We were informed that the SDO price had dropped to zero and were told not to trade SDO.
“SafeDollar is under attack. We have stopped activity on SafeDollar and are currently investigating the situation. After the investigations, we will inform you with a compensation plan to the liquidity providers.”
Second attack in the week
With this attack, the protocol was attacked for the second time in a week. SafeDollar is the latest Polygon-based attack protocol. On June 22, there was an attack that resulted in the loss of 9,959 SDO tokens. On June 17, users made panic sales on Iron Finance, which had a locked value of 2 billion dollars on Polygon for a period, and the event defined as “bank escape” took place.