Solana-based DeFi Protocol Luna Yield Fades With $ 8 Million

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Solana-based DeFi Protocol Luna Yield Fades With $ 8 Million By Hannah perez

The developers of the Luna Yield protocol went offline, taking home more than $ 7 million in what appears to be the first carpet pull on a Solana DeFi.


The block chain Solarium (SOL) appears to have just experienced its first massive robbery of a decentralized finance platform (DeFi) based on said network.

The DeFi protocol Moon Yield, which offers services of yield farming or yield agriculture on Solarium, was suddenly disconnected taking close to USD $ 8 million of funds. According to reports, the official website of Moon Yield and all of his social media channels disappeared without warning on Thursday.

Some have cataloged the event as the first «carpet pull»Of a project based on Solarium. The term is used to describe a fraudulent event in which platform developers escape with investor funds.

The first «carpet pull» in Solana

The team of SolPad, an initial digital offering (IDO) platform for Solarium, reported the events yesterday afternoon. In a tweet, detailed that they were trying to contact the developers of Moon Yield after all liquidity is withdrawn from the project. Then this Friday, in an update on the events, SolPad reported:

When we first received the news about the Luna Yield rug today, we tried to react quickly to the situation and trace the addresses belonging to the Luna Yield team, along with their IP address, but to no avail.

It seems they have already deleted all their messages, conversations and information and successfully transferred the funds to [herramienta de mezclado de criptomonedas] to avoid tracking.

An anonymous source confirmed to CoinDesk that the platform’s funds, which it assured are more than USD $ 6.7 million in assets, had been liquidated. The funds are already gone and there is no way to get them back. They all moved from SOL to ETH [Ethereum] and then to the decentralized service Tornado Cash“Said the person familiar with that medium.

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For its part, the blockchain analysis team hoakegani suggested that the developers of Moon Yield they withdrew around $ 8 million in various cryptocurrencies.

Losses of more than USD $ 7 million

According to the medium CryptoBriefing, the robbery would have been carried out through una address from Solarium who implemented the original contract and signed multiple transactions, transferring about USD $ 8 million in tokens WBTC, WETH, LUNY and USDT out of protocol. For its part, a report from CoinDesk suggests that the funds were also transferred in other cryptocurrencies, including SOL, USDC, RAY, ETH, and YFI.

SolPAD, a decentralized platform based on Solarium that allows projects to raise capital, had listed Moon Yield recently, earlier this week. Although they highlighted that not related to the Luna Yield team”.

We only host IDO for projects that submitted qualified documents. SolPAD does not assume any responsibility for any activity of the projects that made a public sale in SolPAD“, Assured the team.

In response to the incident, SolPad announced a compensation plan using the emergency funds of the Foundation. However, the compensation will only be available to IDO investors. Through its social networks, the team said it will refund 60% of the tokens acquired from IDO participants from Moon Yield.

Although we cannot recover lost funds stolen by Luna Yield, we will compensate your IDO buyers on SolPad.

Likewise, they assured that they are “working with relevant parties on the situation”To provide evidence so that authorities, and particularly the larger centralized exchanges, can suspend and block stolen funds.

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Another day, another DeFi attack

The carpet pull Moon Yield comes amid growing community interest in Solarium. SOL, the native cryptocurrency of this network, reached historical highs of price this week above USD $ 77. At the time of publication, the cryptocurrency continues in an uptrend trading at USD $ 75.8 and with an increase of 5% in the last 24 hours.

The events also come amid a growing trend of scams and hacks in the DeFi space. According to a recent report from the forensic firm of Blockchain CipherTrace, the DeFi-related fraud and attacks have cost the protocols and their users $ 474 million in the first seven months of 2021.

Last week we reviewed two attacks; one of them, directed to the protocol Poly Network, It was listed as the largest DeFi attack after generating losses of USD $ 600 million. Although, in that particular case, the hacker decided to collaborate to return the money.

Moon Yield it is far from the first case of a carpet pull within the ecosystem. The practice has become prevalent among yield farming platforms, attracting novice investors on the promise of high profit percentages from holding tokens as collateral or liquidity in a project.

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Sources: Coindesk, CryptoBriefing, Twitter, file

Hannah Estefanía Pérez’s version / DailyBitcoin

Image from Unsplash

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