LB (lordgadsby)

Do not supply or borrow on Drift (Drift.trade) if you value your funds. The protocol is not safe — and it violates its own white paper. I was liquidated for $3K due to a freak USDY price spike on Bybit. No fault of mine. No pause triggered. No rollback. Drift’s white paper promises oracle safeguards to protect users from volatile or uncertain price data. Those safeguards failed — and when I raised it, their final response was: “Sorry, no reimbursement. Not our fault.” I onboarded dozens of users. I trusted this protocol. They constantly bragged about their “stable loop” — supply USDC, borrow USDY, earn the spread — plugging it in Discord as a foolproof earner. What I got was a betrayal of the trust and loyalty I gave Drift for two years. Drift MUST be held to account. Tagging @pythnetwork @mac @hyperliquidevm @solana @solanafoundation @solanaventures @solend #Solana #DeFi #Risk #DeFiSafety #Accountability Full breakdown below 👇

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What happened: On Tuesday 16 Sept, around 07:00 UTC, Bybit printed an abnormal USDY spike far above parity. Within seconds, Drift’s oracle ingested that outlier into the mark price, my health factor collapsed, and my account was liquidated for ~$3,000. There was no circuit breaker, no pause, and no rollback — the system treated a single‑venue wick as ground truth.

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White paper vs reality: What the white paper says — and what actually happened. Drift advertises protections: reject extreme outliers, smooth prices via medians/TWAP so short wicks don’t dominate, and trigger a pause if data is volatile or uncertain. In practice, none of this engaged. An isolated Bybit print propagated into the mark price, liquidations proceeded immediately, and there was no pause state or remediation. That is a direct failure to deliver the safeguards users are told to rely on.

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Why it matters+call to action: Why this matters beyond me— • A single exchange anomaly should never be able to nuke user accounts. • It creates a vector for oracle gaming: transient prints can cascade into forced liquidations. • Drift’s “stable loop” was normalised as safe yield—yet a freak tick unwound it instantly. • Trust erosion isn’t just personal—it damages Solana DeFi credibility. What needs to happen now: • Reimburse losses from the 16 Sept USDY outlier. • Publish an incident report on why the pause didn’t trigger. • Ship fixes: stronger outlier filters, venue weighting, deviation bands, longer TWAP windows, and a liquidation guard. • Document policy for rollbacks/remediation after venue anomalies. Call to others: If you were liquidated around 07:00 UTC on 16 Sep during the USDY spike, reply here. Share what you can so we can map the impact and hold Drift accountable. Recast to reach others.#Solana #DeFi #Risk #DeFiSafety #Oracles #Liquidations #Accountability

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