dYdX Suffered "Clearly Targeted Attack," Founder Antonio Juliano Said

dYdX suffered a targeted attack which included the manipulation of its YFI token market, founder Antonio Juliano said on X.

The team used $9M from the dYdX v3 insurance fund to rectify shortfalls related to liquidations processed in the market for the YFI token, according to a post from the exchange's X account.

"No user funds were affected and our team is working to investigate the event," dYdX tweeted.

Despite this sizable reduction, the insurance fund still retains $13.5 million remaining, dYdX said.

"This was pretty clearly a targeted attack against dYdX," Juliano said.

dYdX will be conducting a review of their risk parameters, and may modify not only the v3 software but also potentially for the underlying dYdX Chain software, Juliano said.

The dYdX token slipped by almost 7% in the hour after the attack was disclosed.