Derivatives-focussed decentralized finance (DeFi) protocol OptiFi accidentally closed its mainnet platform in a programming blunder, locking away $661,000 in USDC.
The Solana-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, however OptiFi said that it will return all users’ deposits and settle positions manually on Sep. 2. 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 erroneous behavior like 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 (TVL) is from one of the team members, meaning that customer asset may only equate to a mere $33,000.
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