Blockchain

Price plummeted after Easyfi got rid of hacking, revealing community compensation plan

[ad_1]

After a devastating hack, the Inter-Chain Decentralized Finance (DeFi) protocol today disclosed a temporary compensation plan for temporary token holders and investors that was affected by one of the largest vulnerabilities in DeFi history.

In a tweet today, EasyFi announced their “temporary compensation plan,” a process that is divided into multiple stages, including immediate payment, IOU tokens, and a reward plan for attack victims.

This hacking attack occurred on April 19 and is considered the largest hacking attack in the history of DeFi. During the attack, it lost 6 million US dollars of stablecoins and 2.98 million EZ tokens, worth up to 120 million US dollars.This hacker However, the situation is complicated because after using the protocol, they own more than 30% of the EZ token supply and have limited liquidity for offloading them. A week later, the token “hard-forked” to EZ 2.0, making the remaining tokens of the attacker practically worthless.

in a tweet EasyFi founder Ankitt Gaur confirmed from his personal account that the hacking was “the result of a targeted attack on the founder’s computer/metamask to access the administrator key and execute a well-planned hacking attack.” “This attack vector is similar to the hack on personal computers in 2020 Hugh Karp, the founder of Nexus Mutual, lost $8 million.

Expert of hacker and exploit publication Rekt famous Theft may be the result of lax security practices, because a person owns the key to the treasure instead of protecting it in a wallet against such hacking attacks, such as multi-signature schemes or time-locked transactions.

EasyFi described the attack as “carefully planned” and “complex” in its compensation plan blog.

Regardless of the reason, the efforts to compensate the victims are multifaceted. According to their position, 25% of the lost funds will be distributed to users “immediately” in the form of stablecoins, while the remaining 75% will be distributed in the form of “IOU” tokens. IOU tokens will “get a 25% discount on the spot price of EZ at the time of issuance” and can be exchanged for EZ v2 tokens at a 1:1 ratio. According to reports, hacker victims will also become recipients of future airdrops from unspecified partners and can use other incentive programs that are still in development.

The post also pointed out that the agreement has attracted new venture capital through an “accelerated” fundraising round after the hacking, which is still in progress.

The token fell 4.7% today to $11.30, and fell 33.8% in a week-still popular with hacker attacks and paid investors who might cash out its IOU.

Compensation methods have become an increasingly popular topic because Hackers and vulnerabilities continue to plague DeFi. EasyFi The multi-faceted approach reflects the Origin Dollar approach, And other protocols choose Creative cross-platform financial management magic to mitigate attacks In recent months.