The developers of Blur Finance – a yield aggregator that leverages several DeFi protocols to optimize user returns strategically – have apparently abandoned the project and disappeared with $600,000 worth of tokens.
Blur Finance had contracts on Ethereum-based layer-2 solution Polygon and Binance Chain.
Blockchain security firm PeckShield tweeted on Wednesday that the protocol’s entire locked amount was stolen within minutes, and its social media channels were deactivated. As a result, Blur’s native token – BLR – has lost almost all of its value with a 99% slump.
Per trackers, Blur had more than 757 token holders on the BNB Chain. A contract was created over Polygon on July 7, with annual yields of over 4000% as of last week.
The BLR token’s price reached a peak of 6 cents last week before falling precipitously to $0.0006403, at the time of writing, according to Coinmarketcap data.
Last week, Dragoma – a Web3 game on Polygon – was also abandoned, with investors losing about $3.5 million. Another project called Teddy Doge managed to steal approx $4.5 million from investors.
All of these cases are examples of classic soft rug pulls, where creators put in the effort to work on the projects and promote those on social media. Once investors are lured into buying their tokens, the developers disappear with the money.
According to Chainalysis, investors lost about $2.8 million in rug pulls last year. However, the numbers might be way higher for 2022.