Polygon Based Defi Protocol Becomes Latest Victim of Exploit, Price Crashes to Zero

Published by
Polygon Based Defi Protocol Becomes Latest Victim of Exploit, Price Crashes to Zero

Polygon-based defi project Safedollar became the latest victim of an exploit earlier today as hackers managed to exploit a security vulnerability in the algorithmic stablecoin’s liquidity pool. The security breach crashed the price of the defi protocol to zero.

Hackers managed to initiate an infinite mint and drained $250,000 worth of stablecoins from the liquidity pools to dump on the open market. The market Cap of $SDO at the time of exploit was $248 million but had only $250K in its liquidity pools. The developers behind the project claimed they had no part in the exploit and promised to investigate the exploit along with a detailed report.

The official Telegram group acknowledged the hack and said,

“SafeDollar has been under attack. We have paused activities on SafeDollar and investigating the matter.”

The developers have promised to compensate the liquidity providers who lost money during the recent exploit

The project was launched just a couple of weeks ago and has faced two security vulnerabilities. The first one occurred on June 20 when one of its IDO vaults was compromised for $95,000.

Advertisement

Hackers Minted 831 Quadrillion Stablecoin

The $SDO protocol’s liquidity vulnerability allowed hackers to mint 831 quadrillion stablecoins which were later sold to the liquidity pools which in turn led to a price collapse.

Source: Polygonscan

The Safedollar price crash comes just weeks after another Polygon-based defi protocol Iron Finance whose price crashed after its governance token TITAN was exploited. The project had Mark Cuban as one of the leading investors.

Defi has become one of the most popular use cases to emerge out of the crypto ecosystem with its market cap reaching over $100 billion within a year. However, the growing ecosystem has been plagued by various exploits and hacks from time to time.

 

 

Share
Prashant Jha

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Justin Sun Pledges $20M Buy Following WLFI Wallet Freeze

Justin Sun Justin Justin Sun responded to World Liberty Financial freezing his wallet by promising…

September 6, 2025
  • 24/7 Cryptocurrency News

Expert Blames ‘Secret Committee’ for Rejecting MSTR Stock Inclusion to S&P 500

Michael Saylor's Strategy (NASDAQ: MSTR) missed the inclusion in the S&P 500 index on Friday,…

September 6, 2025
  • 24/7 Cryptocurrency News

MARA Bitcoin Treasury Nears $6 Billion, Trails Only Strategy in Public Rankings

MARA Holdings, Inc. announced that it now holds $5.9 billion worth of Bitcoin. This cements…

September 6, 2025
  • 24/7 Cryptocurrency News

Senate Banking Committee Releases Updated Draft Crypto Market Structure Bill

The U.S. Senate Banking Committee has released an updated version of the draft Crypto Market…

September 6, 2025
  • 24/7 Cryptocurrency News

Michael Saylor’s Strategy Fails To Make S&P 500 Listing, MSTR Stock Drops

Strategy, led by Executive Chairman Michael Saylor, has been left out of the latest S&P…

September 6, 2025
  • 24/7 Cryptocurrency News

Solana Treasury Company SOL Strategies Gets Approval To List On Nasdaq

SOL Strategies Inc. has received approval to be listed on the Nasdaq Global Select Market.…

September 6, 2025