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

The platform said it will reimburse all users' funds.

AccessTimeIconAug 30, 2022 at 12:26 p.m. UTC
Updated May 11, 2023 at 5:41 p.m. UTC
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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.


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Oliver Knight

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

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