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- The two Solana DeFi Projects open-up following the $114 Million hack of Mango Market.
- The two DeFi projects have lost a large amount after the hack of Mango Market.
- Later, the protocols inform that it has recovered the tokens.
The two Solana based DeFi protocols Tulip, yield aggregator and UXD, stablecoin provider have recovered its tokens from mango market. The recovery of token price was noted after the major exploit earlier this month. These protocols are now open to provide its services.
Mango Market Hack
On October 26, 2022 Tulip protocol shared the post that both USDC and $RAY strategy vaults are fully reenabled and the users can now deposit and withdraw.
Mango Markets is basically based on the Solana blockchain and governed by MNGO token holders through the Mango DAO. It is a completely open source as one can see that transparency is vital for the project when it increases the amount of people who are involved in this project.
On October 12, 2022 OtterSec, Security Audits that empower blockchain ideas posted about the Mango market hack. In a long twitter thread, OtterSec shared that the hacker manipulated the price of native token of Mango (MNGO). Estimatedly $116 Million loan was taken out by the following hack that left the treasury of Mango with 116.7 Million negative balance.
Joshua Lim, Genesis Head of Derivatives further replied on the OtterSec tweet on the same day as he mentioned that the hacker used two different accounts to execute the hack. The hacker goes short on an account and hedges his position on another one.
Lim further added that the hacker deposited 5 Million USD Coin (USDC) to the network before opening an unusually big-long position. Then he bought around 438 Million Mango tokens and quickly summed up $420 Million in unrealized profits. In addition the price of MNGO increased by nearly 1,000%, raising the collateral value of the hacker’s account. And finally he wiped out the protocol when he took more than $116 Million in liquidity from all tokens available.
After the hack it resulted in a 23% drop in the total value of assets locked in the Solana system, which then came down from $1.32 Billion to $997 Million. It must be noted that it is the first time since July 2021 that Solana’s TVL has dropped below $1 Billion.
The “Deal”
On the other hand, Mango Markets made a deal of $47 Million with the hacker to not press criminal charges while getting in return for $67 Million of the stolen tokens. Over this, the person who took the responsibility of this hack replied that he would return the tokens if the community agreed to pay bad debt taken from a previous operation.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
