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GoodDollar says Celo and XDC reserves were hit by a Superfluid bug
The protocol reported 86,588 cUSD exchanged out of its Celo reserve and another $20,857 from its XDC reserve after a malicious app bypassed liquidation safeguards, prompting emergency pauses and suspended bridging.
GoodDollar, a decentralized universal basic income protocol that distributes G$ tokens daily, said a Superfluid vulnerability was exploited to drain part of its reserves on Celo and XDC. According to CryptoSlate, GoodDollar reported that 86,588 cUSD was exchanged out of its Celo reserve, and another $20,857 was exchanged out of its XDC reserve, after a malicious Super App bypassed Superfluid’s liquidation safeguards.
CryptoSlate reported that the bug allowed excess G$ balances to remain active when they should have been liquidated, then those balances were exchanged against assets in the GoodDollar reserve and other liquidity pools. Superfluid’s Security Council said the issue was specific to its Celo deployment, and Superfluid detected insolvent accounts on Sept. 3, tracing the liquidation failure to the Super App bug the next day.
After detection, Superfluid deployed a hotfix that reinstated Super App whitelisting on Celo and closed the affected accounts, while it said other Superfluid networks were not exposed to the same flaw. CryptoSlate also reported that GoodDollar said its Celo and XDC reserves were not depleted, citing monitoring alerts, emergency pauses, and protocol safeguards.
GoodDollar said claiming, G$ transfers, and identity verification have resumed on Celo, but reserve operations on Celo and XDC remain paused while bridging is suspended and liquidity in external pools remains limited, according to CryptoSlate. It also advised users against swapping G$ until liquidity improves, warning that thin markets could increase slippage and cause prices to diverge from normal levels, and it said the XDC loss remains unexplained.