Bitcoin

Following the exploit, the Warp Finance Compensation Plan is taking promising steps

In a blog post from Saturday evening Warp Finance – –the last protocol decentralized financing (DeFi) who suffered a smart contract exploit– – Announcing promising advances in user rewards following a nearly $ 8 million flash loan attack.

As Cointelegraph reported on Friday, the DeFi Protocol, which offers stable coin loans for the collateral of liquidity pools, lost $ 7.7 million to USDC and DAI as of One attacker used several quick (or flash) loans to create liquidity pool tokens, manipulate Warp’s price oracle, and drain Warp’s stable coin coffers.

After the attack, a group of white hat hackers met to support the protocol evaluate the damage and come up with a solution to the exploit and in this case recover part of the lost money.

Following the exploit, the Warp Finance Compensation Plan is taking promising steps
Following the exploit, the Warp Finance Compensation Plan is taking promising steps

In an entry entitled “Exploit Summary and Funds Recovery”, the Warp team found that the attacker’s loan could not be repaid due to the manipulated oracle With the help of the white hat hacker team, they managed to win back the liquidity pool token guarantee.

“”The loan guarantee has now been secured by the Warp finance team and allows us to return approximately 75% of the amounts deposited by users.Thanks to the support of the Ethereum community and White Hat, “the team said.

The ad said that The team will pay out funds to affected users on December 21, 2020and asked users to independently confirm that the snapshot of addresses they took is correct.

The team also discussed a comprehensive compensation plan. Promise of distribution of IOU tokens that will have a future profit to cover the remaining 25% loss::

“Although we are relieved that some of the lost funds have been recovered, We only see this as a first step towards completing Warp Finance users. For this reason we issue portal IOU tokens to every affected user. The ultimate goal of the Schuldschein is to fully refund usersand may even give them a profit on what they originally deposited. “

The Warp team’s dedication to fully covering user losses is part of what can become promising trend through exploited DeFi protocols.

In a previous interview with Cointelegraph, the semi-anonymous lead developer of Cover – a project that provides “coverage” and an insurance-like product for DeFi users – said so If developers are held accountable for losses, it will ultimately move the room forward::

“I think the logs (and their reviewers) need to start taking responsibility for the code they put out,” he said. “Whether they’re hiring themselves or paying back, this type of behavior sets strong precedent and allows users to feel more secure on the platforms they use and promote TVL so that everyone wins.” “.

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