Celo Bug Drains $100k from GoodDollar's Reserves

A decentralized universal basic income protocol called GoodDollar has fallen victim to a security vulnerability on Celo. The issue allowed an attacker to drain more than $100,000 from GoodDollar's reserves by exploiting Superfluid's liquidation safeguards.

The attack occurred on September 9 and affected both the Celo and XDC reserves of GoodDollar. According to GoodDollar's dashboard, a total of 86,588 cUSD was exchanged out of its Celo reserve, while another $20,857 was withdrawn from its XDC reserve.

This exploit also impacted external G$ liquidity pools, but the exact losses in these areas have not been disclosed. As a result of this attack, GoodDollar's reserves now hold significantly less stablecoins, which could have a ripple effect on the daily distribution system for users claiming Universal Basic Income (UBI).

GoodDollar's reserve is backed by stablecoins and generates yield through DeFi investments to support G$ issuance and UBI distributions. The protocol claims more than 963,000 unique UBI claimants and has distributed over 2.3 billion G$ tokens.