Confirmation of Impact WRT Drift Protocol Incident
Over 20 Solana protocols with downstream exposure to Drift were affected. Reflect was among them.
How this affects Reflect Beta users
USDC+ collateral was allocated to Drift as its lending venue. As a result of the exploit, USDC+ collateral deployed to Drift was impacted. The approximate value of USDC+ collateral allocated to Drift at the time
of the incident was ~$1.9M.
USDT+ was not affected. USDT+ operates on Reflect’s newer venue routing framework, which distributes collateral across multiple venues, and had no exposure to Drift at the time of the incident.
Minting and redemptions for both USDC+ and USDT+ were paused immediately after detection of the
exploit.
Immediate Actions Taken
The team has been in active daily contact with legal counsel, law enforcement, and the Drift team regarding the situation since the day of the incident.
Beyond the immediate response, the team is conducting an extensive review of all available options with counsel. This includes monitoring developments around Drift’s own recovery and remediation process, law enforcement
proceedings, and third-party recovery efforts underway across the ecosystem. We are not in a position to make specific commitments at this time, but we are taking this seriously and evaluating every avenue available to us.
We expect to provide a further update within two weeks.
Relaunching Reflect
Reflect’s relaunch will follow the completion of a thorough, public review of all yield venues on the Solana network. This review will go beyond conventional smart contract risk and will cover vectors that are not always visible to end users, including multisig configuration changes, admin key activity, governance parameter modifications, and other operational risk factors that this exploit has shown are critical to monitor.
We will not relaunch products until this process is complete and we are confident in the protections in
place.
Where to follow updates
All official updates will be shared through @reflectmoney and @0xNIC0. Do not trust information from any other source.
Clarification on why we "gatekeeping" people.
Dear our valuable users,
First I want to express my sincere gratitude to the early farmers, testers, advisors, and believers of this DeFi experiment. Up until today 112,000 waitlist registration, 20,000 DAUs, 44,000 positions opened, 80,000 transactions, and so on, are incredible numbers in a bear market.
These numbers are giving us a "pleasant headache". Our infrastructure could not handle that many of people at a time and our plans on multiple tools draining like crazy. That's why we have to make multiple layers of entrances, so that the platform won't crash😅.
With that being said, I am grateful. Thank you for joining this experiment. We'll let everyone in asap. in the meantime, we do expect to receive as many feedbacks as possible. We'll post a feedback form.
@LoraFinance@WCNetizens My explanation was poor; the megaeth testnet faucet isn't being delivered. Also, the social task is working fine now, so I'll DM you if the same problem occurs again!
@LoraFinance@WCNetizens I tried using the faucet, but it doesn't seem to be working. Therefore, I'll try the testnet tomorrow or later.
Also, the Social Task I completed isn't showing up as completed; this might be a load issue.