Ah poop, what a difference a few hours and the random choice between two different protocols makes... I have stablecoins stashed into various DeFi protocols at the moment after being protected away from CEX savings options... and most of the CEXs don't really offer competitive rates anyway... often they have a pretty decent rate for the first 500-1000 USD, and then it drops off sharply after that.
So, the other day, I was looking at two different protocols that I wanted to stop lending to... as I needed the stablecoins elsewhere. One of them was a Beefy Vault that harnessed Sonne Finance for yield, and the other was a good old-fashioned Compound vault.
Now, the Beefy Vault did have a much higher interest due to the fact that it dumped OP and Sonne rewards in favour of a pure USDC yield... whereas the Compound vault paid out in a combination of COMP and USDC tokens. I was more comfortable from the risk side of things with the Compound protocol, that has been around for ages... even though it paid out lower, there is just something a bit reassuring about one of the old fashioned DeFi protocols that is worth something in terms of peace of mind.
However, I decided to be a touch greedy... as I only needed the USDC for a few days, and I figured that I could just send it straight back to the on-chain yield farms as soon as I was done. And so, I stopped the Compound vault...
... fast forward twelve hours to today. And not so long ago, I saw a message pop up on the PoolTogether discord... something about the Sonne vault being paused due to an incident. Sigh, those aren't words that I like to see...
... and so, I jumped onto the Beefy website immediately, to see if I could just withdraw from the DeFi vault immediately. But no, that was also paused.
... and then onto Twitter, and then the Sonne discord... and it turns out that they were exploited. I didn't read the details, as I'm not really a Sonne user, it was just where Beefy was getting its yield from. Something about using an older fork of Compound, and a recent update introducing some sort of vulnerability?
Anyway, that meant that I've pretty much lost those funds... unless they can negotiate a recovery...
... but on the plus side, there was a notice from Beefy saying that they acted quickly and were able to recover 2/3rds of the at risk assets. So, if that is true, then hopefully the worst case scenario is a 1/3rd loss instead of a 100 percent loss on that vault.
Still, it stings... more out of hurt pride, and the fact that only 12 hours ago, I made a foolish decision to chase profit over comfortable safety!
Ah well... win some, lose some.
I can also be found cross-posting at:
Hive
Steem
Publish0x
Handy Crypto Tools
Ledger Nano S/X: Keep your crypto safe and offline with the leading hardware wallet provider. Not your keys, not your crypto!
Coinbase Wallet: Multi chain wallet with lots of opportunities to Learn and Earn!
Binance: My first choice of centralised exchange, featuring a wide variety of crypto and savings products.
WooX: The centralised version of WooFi. Stake WOO for fee-free trades and free withdrawals! This link also gives you back 25% of the commission.
GMX.io: Decentralised perpetual futures trading on Arbitrum!
Coinbase: If you need a regulated and safe environment to trade, this is the first exchange for most newcomers!
Crypto.com: Mixed feelings, but they have the BEST looking VISA debit card in existence! Seriously, it is beautiful!
CoinList: Access to early investor and crowdsale of vetted and reserached projects.
Cointracking: Automated or manual tracking of crypto for accounting and taxation reports.
KuCoin: I still use this exchange to take part in the Spotlight and Burning Drop launches.
MEXC: Accepts HIVE, and trades in most poopcoins! Join the casino!
ByBit: Leverage and spot trading, next Binance?
OkX: Again, another Binance contender?
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