Two decentralized finance (DeFi) projects on the Solana blockchain, Tulip and UXD, have managed to reopen services after recovering tokens lost in the DeFi platform Mango Markets exploit.
Tulip and UXD projects were the two major platforms affected hit by the exploit earlier this month. When Mango Markets suffered a price manipulation attack, $114 million in user deposits was lost to hackers. However, after intense negotiations with the hackers, Mango Markets was able to recover over 50% (amounting to $67 million) of the stolen fund.
The development spells hope for the DeFi ecosystem, which has been struggling after being hit by multiple exploits during long crypto winter.
Stability boost for UXD
The UXD protocol is a decentralized stablecoin protocol on Solana. It lost $19.9 million to the hackers of Mango Markets. Following the exploit, the UXD protocol had paused minting stablecoins for several weeks.
Post-recovery, the protocol took to Twitter to celebrate the victory.
UXD Protocol was able to claim the funds from @mangomarkets!
We received 1,601,0171.23 USDC, 125,637.9571 SOL, 4,953.65348 SRM, 10,000.34093 MNGO. As a result of selling SOL, SRM, MNGO for USDC, the total USDC that has been returned to the insurance fund is 19,965,020.9128 USDC.
— UXDΔ (@UXDProtocol) October 26, 2022
The platform is also in the process of releasing an “asset-liability management module” to manage its DeFi-related investments in multiple protocols. This will be an important move as the UXD stablecoin maintains its value by allocating funds to third-parties. It even puts its USDC holdings into lending platforms to earn yields.
Balance restored at Tulip
Tulip, a Solana-based yield aggregator platform, on the other hand, received back its assets worth $2.5 million. It had staked this sum on Mango Markets. Tulip operates by collecting deposits from users and allocating them to different staking and lending protocols, like Mango.
The platform has now restored the vault balance of all its users. It has also enabled the withdrawal option.
Mango Market’s quick and proactive action has helped reduce the impact of loss from the exploit and saved the day at least for these two protocols.