Safedollar not Safe! Algorithmic stablecoin protocol on Polygon hacked, another case of stablecoin going to zero.

The algorithmic stablecoin protocol Safedollar on Polygon was reported to have been hacked today. The team has confirmed this news in their Telegram group, but has not yet provided a detailed report on the incident.

The algorithmic stablecoin protocol Safedollar on Polygon was reported to have been hacked today. The team has confirmed this news in their Telegram group, but has not yet provided a detailed report on the incident.

According to the code auditing firm PeckShield, the attack is related to vulnerabilities in the protocol itself, which resulted in 831,309,277,244,108,000 units of the stablecoin SDO being minted illegitimately.

Here is the root cause of today's @safedollarfi hack pic.twitter.com/bikQSTNmGn

— PeckShield Inc. (@peckshield) June 28, 2021

At the same time, the attacker drained the funds in the pool of USDC and USDT stablecoins with this massive amount of SDO, causing the value of SDO to plummet to zero.

According to on-chain data, the hacker made nearly $250,000 in profit from this attack. This is not the first time Safedollar has encountered issues; reportedly, the project was hacked on June 22, resulting in a loss of around $95,000 worth of SDS tokens.