On January 23rd, 2024, the Notional team reported that they found a potential vulnerability that made them pause depositing to Notional V2 on Mainnet. As a result of this, vaults that used Notional USDC and DAI strategies on Spool were temporarily blocked, and funds flushed but not processed by clearing were temporarily stuck in the ‘on-the-way’ contracts.
For more information on the details of the incident please visit;
Spool — What went wrong with Notional USDC/DAI strategies, clearing (doHardWork), and how we’re moving forward
As a result, users who had temporarily stuck funds could only remove them through a “Fast Withdrawal” while a fix was developed by Notional. As it became apparent a fix would not be forthcoming from Notional to resolve this issue, Spool DAO decided to move ahead with removing Notional strategies from the protocol and unblock user funds that way.
This process has now been completed and Spool is in the process of verification of the fund amounts to be returned. Once this verification has been completed, funds will automatically be returned to the correct wallet with no action required on your part.
The following wallets were affected by the incident;
- 0xc788d6164696299132e826f5ff783fa22eab3c15 — DAI 93233.15
- 0xf6bc2e3b1f939c435d9769d078a6e5048aabd463 — DAI 4880.04
- 0xad5343778f0c2d1debd3845d3386917279b4cc49 — DAI 133.06
- 0x1a2921a0aba58a0199820cbc01fb361777ede19b — DAI 130.30
- 0xc6dcf47da5baba9faca9ff73e67df5018f85d9be — DAI 121.62
- 0xf2ce910fb11ea4abbf7ff0ecdb80527f12f63165 — DAI 57.79
- 0x87eca43781c019455edbb5dddfddc09f3678a7c5 — DAI 26.80
- 0x2721e2fd9de72950ee16a3356ebf29669d11d325 — DAI 15.40
- 0xefd394c41d77d38c397e2999470080339e8443f8 — DAI 4.08
- 0xc788d6164696299132e826f5ff783fa22eab3c15 — USDC 224470.37
- 0xc3a0abc37a38484ed6d44ebddc664a369c9fd6a4 — USDC 9815.51
- 0x1a2921a0aba58a0199820cbc01fb361777ede19b — USDC 297.56
- 0xafeb821eec9038981ab259eaf12b6677c21d98ae — USDC 217.45
- 0x0fb206b6e0fadab30dcdff380ff725b6234fc07f — USDC 142.10
- 0x8b4bc5cb23b2b3a2243e44b7812344949943d608 — USDC 45.77
- 0xeb15d21246f9cad7451533931662cc5383b9789e — USDC 44.72
- 0xcfcb3b4d134b67fcc459e59a04a815888542afcc — USDC 32.35
- 0xf2ce910fb11ea4abbf7ff0ecdb80527f12f63165 — USDC 17.33
- 0x2721e2fd9de72950ee16a3356ebf29669d11d325 — USDC 16.32
- 0xf8e5227add01b2b8f36981a2566c160e5e4136e4 — USDC 5.25
- 0x7d965039141418d6f8c0d534f3d86c4b53e2fd4d — USDC 1.70
- 0x24f35b57e3e415adbf5a3733c3b4338aed4105a6 — USDC 0.03
- 0xe58b01c3002957ae682a148311f3ed3e6e57962c — USDC 0.02
Unfortunately, this incident has occurred and, while Spool DAO does take preventative action against such issues, the composability of DeFi assumes that there is a risk caused by underlying protocol dependencies.
That’s why we have developed an internal playbook to measure various incidents, internal guidelines to react to the incidents in an efficient manner as well as communication guidelines to inform our users of the current state of the incident and its resolution, according to the incident risk score.
Internal resolution and external communication guidelines are enacted according to this score matrix:
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Spool is a permissionless DeFi platform that connects Capital Aggregators with DeFi Yield Generators. Funds are dynamically and efficiently allocated to ensure optimized yields, for custom strategies, managed by DAO-curated Risk Models.
Spool was established as a DAO, with a selection of founding contributors representing a diverse cross-section of the blockchain community.
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