SafeDollar 'Stablecoin' Drops To $0 Following $248,000 DeFi Exploit On Polygon

The price of SafeDollar (SDO), an algorithmic decentralized finance (DeFi) stablecoin based on the Polygon (MATIC) blockchain, has plummeted to literally zero as a result of what appears to be an exploit today. CryptoSlate reports: While details are yet scarce, block explorer Polygonscan shows that 202,000 USDC and 46,000 USDT stablecoins were suddenly drained from SDO's smart contract today -- worth around $248,000 in total. As a result, SafeDollar's price -- which was supposed to always be equal to $1 since it's a stablecoin -- has plummeted to zero, according to the protocol's own website. The attack was also confirmed in a Telegram channel called 'SafeDollar Announcements' today, with developers urging users to stop all operations with SDO and ostensibly promising to come up with a compensation plan in the future. Notably, this is not even the first time SDO was exploited. Just a week ago, SafeDollar developers published a 'Postmortem Analysis' about an exploit that resulted in the loss of the protocol's 9,959 SDS tokens -- worth around $95,000 at the time.

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