Today in DeFi - Opyn Exploit, Eth Perps, YFFI Farmers Rekt

Opyn Exploited for $371k USD

opyn @opyn_

Here is an overview of the incident affecting ETH Put contracts. No other contracts are affected. ~371k USDC was lost. We worked with @samczsun to whitehack, securing ~439k USDC. Affected users, please see below. Full post-mortem coming in next few days.

medium.comOpyn ETH Put ExploitAn exploit affecting the Opyn ETH Put contracts has been discovered. Other Opyn contracts and options beyond than the ETH Put contracts…

Decentralized options project Opyn was exploited today to the tune of about $371,000. In the post-mortem of the incident, Opyn explained that the exploit

“allowed an attacker to ‘double exercise’ oTokens and steal the collateral posted by certain sellers of these puts.”

The exploit involved Opyn’s Eth Put Options. According to Opyn, other contracts are not affected. Read more about the incident, including what to do if you are an oToken user, here.

dydx Launches ETH-USD Perpetuals

dYdX @dydxprotocol

The ETH-USD Perpetual Contract is live for trading on dYdX. For the first time, traders can get up to 10× leverage on their $ETH without converting to any other token. This gives traders the simplest way to gain leverage in #DeFi. Trade now: trade.dydx.exchange/perpetual/ETH-…

dydx - a decentralized exchange - just launched ETH-USD Perpetual Contracts in addition to its existing BTC-USD Perpetual Contracts.

Popularized by Bitmex, perpetuals allow for high leverage trading. With ETH collateral, traders don’t need stablecoin exposure to leverage ETH. If you want to learn more about this product and why it matters, this video from DeFi Dad is excellent.

Impermanent Loss Wrecks YFFI Farmers

Daryl Lau @Daryllautk

There's already been a ton of Anon Forks Exit scamming please be careful, don't be the harvest. When Impermanent Loss hits it hits you HARD. Just stay in a yVault if you want yields and you'll grow $YFI's value too :)

Andrew Kang @Rewkang

$YFFI is entering the death spiral after peaking at $700+ and $80M+ TLV just yesterday Price is now down 90%+ and TLV around $65M https://t.co/Vw5BbxAS8S https://t.co/XkUn23XAQh

YFFI, a YFI copycat, dropped in price from hundreds of dollars to $1.99 today. Farmers who farmed the 98/2 DAI/YFFI vaults got rekt. While a 2% portion of YFFI means low exposure to YFFI, a >90% drop in value will still result in signficant amounts of impermanent loss.

The issue with Y Copycats is that while the farming contracts are in some cases relatively safe to use, the coin being farmed often has no value. This means price action is dominated by sell pressure.

YFFI Balancer pool farmers who stayed in too long learned this the hard way, as their impermanent losses outweighed their yield.