Summary
Safe Dollar (SDO) was an algorithmic stablecoin launched on the Polygon network in June 2021 that collapsed to zero within two weeks of its initial DEX offering. The protocol suffered two separate exploits in rapid succession, with the second draining approximately $248,000 in USDC and USDT from its liquidity pools by exploiting a reward-calculation flaw that allowed unlimited SDO minting. The project was flagged as a high-risk entity by on-chain investigators and DeFi security researchers, and its stablecoin peg was never restored.
Connected Entities
1 entities · 10 linked investigationsTimeline(8 events)
2021-06-14
SafeDollar completes its Initial DEX Offering (IDO) on PolyDEX's PolyLAUNCH platform, selling out within 22 hours.
SafeDollar Medium / CryptoSlate2021-06-20
First exploit: SafeDollar's IDO vault is compromised, resulting in the theft of 9,959 SDS share tokens valued at approximately $95,000.
Decrypt / CryptoSlate2021-06-22
SafeDollar team publishes a post-mortem analysis of the first exploit, concluding that 'the SafeDollar protocol is working normally.'
SafeDollar Medium2021-06-28
Second and fatal exploit executed at 03:48:36 UTC. Attacker (0xfedc2487ed4bb740a268c565dacdd39c17be7ebd) manipulates the PLX v1 pool reward formula to mint 831 quadrillion SDO tokens, then dumps them, draining 202,230 USDC and 46,000 USDT (~$248,000) from liquidity pools. SDO price collapses to zero.
CoinDesk / SafeDollar Post-Mortem / CryptoSlate2021-06-28
RugDoc.io flags the exploit on Twitter. SafeDollar team posts on Telegram urging users to halt all SDO trading and announces a pause on all protocol activities.
CryptoSlate / BeInCrypto2021-06-29
Major crypto outlets including Decrypt, CoinDesk, Newsweek, and CryptoSlate publish coverage of the SafeDollar collapse.
Newsweek2021-07-01
SafeDollar team publishes 'Move Forward' plan outlining SDO v2 relaunch, SafeUSDC synthetic asset, and a compensation framework for affected liquidity providers and SDO holders based on a pre-exploit snapshot.
SafeDollar Medium2021-07-12
SDO v2 relaunch scheduled per the team's compensation plan. No independent verification of full compensation distribution to affected users is documented in available public sources.
SafeDollar MediumDecision Log
- hash: Gq7ApHQyBTBS45hEicYHCTfaxxFDpvtq2yxhWXaMhrHA
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:56 AM
last updated: 5/30/2026, 12:11:41 PM
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