Attack included market manipulation of the $YFI market.
dYdX suffered a targeted attack which included the manipulation of its YFI token market, founder Antonio Juliano said
The team used $9M from the dYdX v3 insurance fund to rectify shortfalls related to liquidations processed in the market for the YFI token, according to a post from the exchange’s X account.
“No user funds were affected and our team is working to investigate the event,” dYdX tweeted.
Despite this sizable reduction, the insurance fund still retains $13.5 million remaining, dYdX said.
“This was pretty clearly a targeted attack against dYdX,” Juliano said.
dYdX will be conducting a review of their risk parameters, and may modify not only the v3 software but also potentially for the underlying dYdX Chain software, Juliano said.
The dYdX token slipped by almost 7% in the hour after the attack was disclosed.