SafeDollar crashes to zero following Polygon exploit

Nigeria (CoinChapter.com) — SafeDollar has joined the ranks of recent DeFi coins hit with a Polygon exploit. A post on the SafeDollar website shows that the coin has now dropped, with its market cap down to zero. Trading activities have now been halted, pending investigation.

The first attack reportedly had a loss of $248 million. But the correct amount was subsequently released, which was $248,000. Much less than $248 million. But a substantial amount nonetheless. This was apparently enough to cripple the entire project.

SafeDollar (SDO)

SafeDollar is a coin that is pegged to the U.S. dollar. It is one of the next generations of algorithmic stablecoins. This is because it combines a unique set of features in its protocol. The features include seigniorage, deflation protocol, and synthetic assets. In addition, it is a DApp that allows users to farm for coins.

SafeDollar is based on the Polygon network. The Polygon network is a multi-chain scaling solution for Ethereum. This solution helps to provide cheaper and faster transactions using Layer 2 side chains.

The pre-launch of the token consisted of an initial airdrop of 6.8899 SDOs to wallets across eight communities. The communities were Basis Cash, Mithril Cash, PolyDoge, Safemoon, Wuickswap, bDollar, Iron.Finance. MidasDollar. This information is on the SafeDollar Whitepaper on Medium.

The communities had a total of 35,984 wallets between them. And a total of 100,000 SafeDollar (SDS) was distributed.

Polygon Exploit

This is not the first time that the project has succumbed to an exploit on Polygon. About a week ago, the team released a post mortem attack analysis that had led to the loss of 9,969 tokens. According to the analysis, the attack had happened on June 20, 2021. The value of the tokens at the time of the loss was $95,000.

It showed that the attacker had stolen 9,959.26 tokens. Which they then proceeded to sell for USDC after bridging it with Ethereum.

Following the attack, the SafeDollar team crafted a compensation plan. They used funds from the Dev fund to do this.

Also read: Ethereum Analyst Explains Why ETH Is Set To Break Higher

The SafeDollar team deployed a new contract for the tokens. This allowed users to claim tokens lost in the attack.

The compensation plan further helped to strengthen faith in the project. It showed investors that the project was here to stay.

But then the second attack happened. Successfully crashing the token, the attacker made away with almost all of its exit liquidity.

There is still no word from the team regarding the current attack. Investors wait anxiously to hear from the team regarding what looks like a hard rug pull.