On June 28, the Polygon ecological algorithm stablecoin project SafeDollar was attacked by unknown hackers. The stablecoin SDO issued by the project dropped from $1.07 to zero instantly at around 12:25 this morning.
Contract address:
Contract address:
https://polygonscan.com/address/0xc44e71debf89d414a262edadc44797eba093c6b0#tokentxns
Subsequently, the project party issued an announcement in the telegram group, requesting investors to stop all SDO-related transactions, and publish the incident report after investigating the compensation plan of the liquidity provider. As of press time, SafeDollar TVL is approximately $25.7 million.
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1 Polygon ecology ushered in hacker season?
In fact, SafeDollar is not the first publicly reported hacking project in the Polygon ecosystem.
On June 20, a hacker attack occurred on the Polygon ecological project PolyDEX. The hacker carried out a re-entry attack on the Token Locker smart contract and stole about $500,000 worth of funds from the project. Perhaps BSC has attracted too much attention from blockchain security companies, or perhaps this project is not well-known. In short, this hacking incident has not been known to the public.
After the incident, PolyDEX acted quickly, notifying Polygon to prevent the hacker's wallet from connecting to Ethereum. But the request couldn't be activated in time due to the time zone difference. At the same time, PolyDEX deployed the patch immediately, but due to the time lock, the patch was not executed in time. Ultimately, the hackers moved the funds from Polygon to Ethereum and got away.
Detailed incident report:
https://safedollar.medium.com/safedollar-postmortem-analysis-96c8cfb4c2a3
SafeDollar was also implicated due to the previous IDO on PolyDEX, resulting in the loss of 9,959 SDS SDS ("stocks" issued by SafeDollar).
Ultimately, the SafeDollar team decided to use the development fund to provide IDO buyers with subsidies for lost SDS.
If the last attack on SafeDollar was a lie. In this attack, hackers took the initiative to attack SafeDollar (the specific method needs to be further analyzed).
This is a red flag.
We know that May is the darkest season for BSC. On May 2, the first flash loan attack occurred on BSC, which kicked off the prelude to the BSC flash loan attack. In May, as many as 12 projects were hacked on the BSC, causing losses of nearly $200 million.
By June, the loss was also $22 million.
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2 "Stable calculation" is not stable
SafeDollar sees itself as a next-generation algorithmic stablecoin that combines features such as seigniorage, deflation, and synthetic assets.
1) Seigniorage: When SDO exceeds $1, there is no tax. Seigniorage is charged when SDO is below $1.
2) Deflation: Trading SDS will generate a 2% fee, half of which is used to repurchase SDO and destroy, and the other half is used to increase liquidity.
3) Synthetic assets: SDO can synthesize safeUSDT (sUSDT) with USDT, and safeMATIC (sMATIC) with WMATIC.
SafeDollar is a very sentimental project.
In order to pay tribute to the previous generation of stable pioneers, SafeDollar airdropped nearly 100,000 SDOs to Basis Cash, Mithril Cash, bDollar, Iron.Finance, MidasDollar and other communities at the beginning of its launch.
On June 17, the ecological project IRON Finance on Polygon suffered a "run", and the governance token TITAN returned to zero. SafeDollar announced on the same day to donate 50,000 SDOs (valued at about $650,000 at the time) to TITAN holders, and issued an announcement stating that the system funds are safe and there is no fear of a run.
The anchor price of SDO is 1 USD, and the highest value is 19 USD (the day before IRON Finance was attacked).
Today, SDO is reset to zero, very thoroughly (1SDO=3*10^-12USDT). From the end of May to the present, it has only been one month.
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Image credit: Twitter @billtheinvestor
