Synthetify DeFi Platform Halts Activity, Says Funds Are Safe

This post was originally published on bein crypto

The new Synthetify DeFi Platform halted all activity shortly after its public debut because of faulty price data. 

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Solana-based asset exchange Synthetify announced via Twitter a platform wide halt on activities. The platform cited misinformation on TWAP price data, which it sources from the Pyth Network. Moreover, the company confirmed the safe storage of funds while the platform was down. 

In addition, the Pyth Network also took to Twitter with Tweets which confirm its mishap. 

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“A bug was identified in the underlying floating-point math library used by the Pyth on chain program to compute the TWAP. This bug resulted in an overflow that led to inaccurate TWAP calculations. Developers have identified the error in the library and a fix has been deployed.”

It also confirmed no loss of funds. The follow-up Tweet called out to Solana developers for collaboration on, “building open standards that will help prevent such errors in the ecosystem going forward.”

While the Solana network has seen more institutional interest in recent months, it also faced some major glitches. In mid-September, the network went through a 17-hour outage caused by a transaction overload. Although Solana is still in the early stages of its development, the layer 1 glitch affected all developers on the network. 

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DeFi Glitches

Synthetify is Solana’s latest DeFi platform. It exists for the creation and trade of price tracking tokens. Such price data is sourced from the Pyth network. Pyth relays prices of  stocks, metals, traditional currencies and crypto assets to Solana software. 

However, such mishaps are not new to the DeFi space. In 2021 the world of decentralized finance saw record losses from attacks and theft. Thus, such glitches require acute attention in the avoidance of attack vulnerability and misinformation. PolyNetwork went through DeFi’s largest hack, from which $600 million went missing. 

Such glitches, attacks, and lack of KYC protocols garnered the reputation of the crypto “wild west” for the DeFi space. It also causes skepticism from regulators. The SEC chairman Gary Gensler specifically called out DeFi. He reiterated that there is no exemption from regulations.

Back in August, the SEC pressed its first charges in the space against the DeFi firm Blockchain Credit Partners.

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Savannah Fortis is a multimedia journalist covering stories at the intersection culture, international relations, and technology. Through her travels she was introduced to the crypto-community back in 2017 and has been interacting with the space since.

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