dYdX Faces Backlash for Risk Management Failures Amid $9M Hack

• Critic Adam Cochran criticizes dYdX for failing to adopt proper risk management following a $9 million hack
• dYdX offers bounties for information on the $9 million hack but refuses to negotiate with the attackers
• dYdX founder suspects the hack was a targeted attack and seeks FBI involvement

Prominent crypto critic Adam Cochran has faulted the recently exploited decentralized protocol, dYdX, for failing to adopt proper risk management following a hack where $9 million in insurance funds was carted away.

In the critical comment to dYdX, Cochran drew parallels with Synthetix, a similar platform providing tools for derivatives trading in DeFi. Specifically, he pointed out Synthetix’s mechanism for handling profitable trading and managing risk. 

Cochran noted that on Synthetix, users can earn money through highly profitable trading, but the interest rate will also rise. However, when a user attempts to execute a manipulated bid on an illiquid asset with a staggering sum, Synthetix’s risk management protocol kicks in to prevent potential damage to the system.

Cochran concluded the tweet, stating, “It’d be dumb to not manage risk,” with a disapproval gestur…

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