Solana Projects Reboot as Money Lost From Mango Markets Fiasco Is Recovered

Wednesday evening marked a sensational moment for several Solana projects as they reopened after they received back lost money from the recent Mango markets hack. The tokens that UXD Protocol and Tulip lost due to the Mango Markets exploit have now been returned. Both initiatives have commenced the reinstatement of their services on the Solana blockchain.

UXD and Tulip Reacquire Their Tokens

Tulip and UXD, two Solana-based decentralized finance (DeFi) protocols, have obtained tokens from Mango Markets, a lending protocol that experienced a significant exploit a while back. This has allowed both initiatives to resume offering their facilities and restored faith in the Solana Defi incident.

Mango Markets experienced a severe market speculation invasion and lost $114 million in user deposits, which impacted the projects. The protocol was able to renegotiate the return of $67 million of the stolen money.

On October 20, the Mango Markets team started accepting claims from users, including those from other Solana projects, who had lost money due to the attack. UXD Protocol and Tulip Protocol have obtained their lost funds and begun reopening their respective services.

UXD is the reference implementation of OpenDEX and is built on top of the Lightning and Connect networks. Exchange Union provides liquidity, convenience, and profit to traders on the OpenDEX network. The Solana-based protocol announced the claimed funds from mango markets on a Twitter post.

“UXD Protocol was able to claim the funds from @mango market! We received 1,601,0171.23 USDC, 125,637.9371 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.”

UXD Will Relaunch a New Stablecoin Mint

UXD Protocol alerted users that it had managed to recover all assets lost during the Mango exploit. The stablecoin retains its value by funding third-party investment strategies, such as lending its USDC stablecoin assets to earn yields.

The Solana-based platform had been denied access to the $19.9 million it had deposited on Mango Markets. After reclaiming its assets, the team stated that it would resume full operations. This includes minting new UXD stablecoins, which had been halted due to losses incurred due to the Mango exploit. The team stated that the “asset-liability management module,” a feature used to manage its diverse Defi investments, would need to be reset to resume full operations.

Additionally, CEO and Founder UXD Kento Inami said in a report that the protocol was able to recover all funds that were exposed to Mango Markets. Currently, they have enough capital in the insurance fund to pave the way for the asset liability management module, which will be released soon.

Tulip Has Reinstated User Withdrawals

Tulip Protocol, a yield aggregator, based in Solana, has claimed and recovered assets worth $2.5 million that it staked on Mango Markets on behalf of its users. 

Regarding the protocol, it lost access to 2.4 million USDC tokens, and 68,475 raydium tokens ($30,000) were deposited into Mango Markets at the time of the attack on its USDC and RAY strategy vaults. The team has now restored vault balances to their pre-exploit state.