Solana-Based DeFi Protocol OptiFi Loses $661K in Programming Blunder

Derivatives-focused decentralized finance (DeFi) platform OptiFi accidentally closed its mainnet platform in a programming blunder, locking away $661,000 in USDC.

The Solana blockchain-powered protocol made the error when it tried to update its program code. Instead of a standard update, OptiFi accidentally used the "solana program close" command, resulting in the permanent closure of the platform on the mainnet, according to a blog post.

The funds are irretrievable, although OptiFi said that it will return all users' deposits and settle positions manually on Friday. The estimated process time will be two weeks.

DeFi is the term used to describe financial transactions carried out on a blockchain without the use of intermediaries. There are several risks associated with DeFi that are connected to rug pulls and fraud, but this is one of the first cases where a programming error has resulted in the complete loss of customer assets.

In a tweet, OptiFi said that 95% of total value locked is from one of its team members, meaning that customer asset may equate to only $33,000.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.