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Meerkat Finance

Rug Pull

DeFi · ✝ 2021

A 'contract upgrade' that quietly redirected vaults to the deployer.

Meerkat Finance was a BSC yield-farming vault project that vanished roughly $32M just a day after launch in March 2021. The team altered the contracts to drain user deposits and then disappeared, in what was widely judged a rug pull.

Peak
~$32M stolen
Cause
Rug Pull
Year of death
2021

☠️ Cause of death

An upgradeable proxy let the deployer swap in malicious logic that drained the vaults, after which the team went dark.

📓 Lessons left behind

  • Upgradeable vault contracts can be weaponized by their own team.
  • Demand verifiable timelocks on any upgrade authority.
  • Day-one launches with admin keys are red flags.

🌱 The idea that survived

Timelocked upgrades

Reinforced demand for timelocks and immutable vaults so deployers cannot silently swap drain logic.

#defi#rug#bsc