Solana-Based DeFi Protocol OptiFi Loses $661K In Programming Blunder

Derivatives-focused decentralized finance (DeFi) platform OptiFi accidentally closed its mainnet platform in a programming blunder, locking away $661,000 in USDC. CoinDesk reports: The Solana blockchain-powered protocol made the error when it tried to update its program code. Instead of a standard update, OptiFi accidentally used the "solana program close" command, resulting in the permanent closure of the platform on the mainnet, according to a blog post. The funds are irretrievable, although OptiFi said that it will return all users' deposits and settle positions manually on Friday. The estimated process time will be two weeks. [...] In a tweet, OptiFi said that 95% of total value locked is from one of its team members, meaning that customer asset may equate to only $33,000.

I know that systems designer

[Petersko]

It's the same dude who allowed a facility to undergo complete structural failure when the console was bumped, sending it straight into the lava underneath without so much as an, "Are you sure you wish to doom this complex?"

real banks and stock trades can't lose do to error

[Joe_Dragon]

real banks and stock trades can't lose do to errors that wipe funds.
but it's seams that no real funds where lost just useless paper ones.

Re:

[gweihir]

They can, but not in this way. For example, a long time back some bank was unable to calculate their stock trading total from a day before the deadline due to IT problems. So they needed to borrow a _lot_ of money for an hour or so. Much more expensive than this mistake here.

Re:

[Tony Isaac]

I don't know...

https://arstechnica.com/tech-p... [arstechnica.com]
https://www.bloomberg.com/news... [bloomberg.com]

It happens.

Re:

[phantomfive]

One bank got scammed by a Nigerian prince scam [wikipedia.org].

Re:

[mysidia]

real banks and stock trades can't lose do to errors that wipe funds.

Real banks can lose funds due to errors, for example: Citi loses its bid to reclaim cash from a $900 million mistake.

Re:

[thegarbz]

real banks and stock trades can't lose do to errors that wipe funds.

Were you trying to say that real banks and stock trades can't lose customer money due to these kinds of errors? They absolutely can, they absolutely do, and they are insured precisely against this. It doesn't make the news because customers aren't impacted.

Or do I need to read your post verbatim, and you're saying the "banks and stock traders can't lose" period, in which case you're right but only if they are big enough to get bailed out by the government.

typical crypto problem

[awwshit]

> The funds are irretrievable

And there is the biggest problem with crypto, you make some mistake and its all over in an instant with no recourse. The average person that needs banking cannot rely on a system that has no recourse when something goes wrong.

Re:

[lessthan0]

Code is Law
Haw Haw Haw!

Re:

[Neuroelectronic]

Or maybe someone who just goes crazy and says, “it’s not about the money it’s about sending a message”

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[Anonymous Coward]

That is a feature. A feature that you want? Maybe not, but you aren't the only entity in the world

"DeFi" = "Deregulated Finance"

[Anonymous Coward]

Derivatives-focused decentralized finance (DeFi) platform

Correction: "DeFi" means "Deregulated Finance", and this story proves it.

Thank you

[quonset]

I needed a good laugh. It's been one of those lives.

Colossal vulnerability

[sdinfoserv]

If a single command can irrevocably lock an account, or worse, the entire platform – that is one hell of a kill switch. Something that monumental should require akin to the 2 keys turned simultaneously of a nuclear launch - rather that than a fatfinger fumbling of a half assed brogrammer.

Re:

[careysub]

Well said.

Re:

[Fly Swatter]

It is the kill switch for when the swat team arrives.
It is the kill switch for when the founders disappear with the money.
It is the kill switch for when the pyramid finally collapses.
It is the kill switch for when the money laundering didn't quite work. And the mob wants justice.

It has to be easy to trigger as you sneak out the back door.

Re:

[rsilvergun]

Crypto Bros tend to have a level of narcissism that makes it impossible for them to imagine they might someday make a mistake. When you're trying to scam people you need to be able to drink your own Kool-Aid to a certain extent.

Re:

[Tony Isaac]

This tells you something about the level of intelligence of the designers of these systems. Many of the developers really don't know what they are getting into, or how to make good software. For that matter, this is true of all kinds of software developers, but with crypto, the stakes are much higher.

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[mysidia]

If a single command can irrevocably lock an account, or worse, the entire platform – that is one hell of a kill switch.

Well, every crypto wallet has such a "kill switch" - It's called Sending the funds to a different address - if you don't control the recipient, then you won't be recovering them. They they sent a solana command that closes the program permanently and sends all funds to the recipient address, But it sounds like they gave a Recipient address that they could not be recovered from af

Re:

[Ed Tice]

It might be true that every crypto wallet has such a kill switch. For those of us who do not do crypto, you certainly make a convincing case. However, the conclusion that us non-crypto bros draw from your post is to use a real bank where that particular problem doesn't exist.

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[mysidia]

However, the conclusion that us non-crypto bros draw from your post is to use a real bank where that particular problem doesn't exist.

It's the wrong conclusion, really. It should be take your due diligence before making financial decisions and make sure to read up on and keep up to date on the rules, concepts and best practices which apply to whatever assets you decide to buy or systems you decide to deposit value into as integral to that process.

You can definitely "kill switch" through Banking and th

A button to destroy all funds?

[cfalcon]

"Why do we even HAVE that lever?"

Re:

[Tony Isaac]

That money didn't just disappear, SOMEBODY ended up with that money in their pocket. Perhaps that was the plan all along.

Re:

[Petersko]

I don't know that I've ever seen an "ENG" reference on Slashdot before. Way to blaze the path!

So what ?

[tizan]

So people lost their virtual money that they could use only to feed their virtual pets on tamagotchis...
Not that some living being is going to go hungry because of that, is there ?

Re:

[Ed Tice]

Sadly there are plenty of people who have lost their life savings in crypto and very well may go hungry.

I don't always test my code

[OrangeTide]

But when I do, I do it in production. [quickmeme.com]

Hardly worth mentioning

[gweihir]

Not even a million was stolen or otherwise lost. The only thing mildly newsworthy is that software processes there are just as pathetically bad and dumb as everybody with a working mind already expected.

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[phantomfive]

I don't know, it gave me a new strategy.

From now on at work, I'm going to place a large button by the door and have sign that says, "Do not press."

If someone presses it, it will destroy the company. A brilliant strategy.

Re:

[gweihir]

Indeed.

That's not what it means

[phantomfive]

DeFi = Decentralized Finance.

If one person can destroy it, then it's not decentralized. It has a central point of failure.