Usual Money Launches Usual USD on Public Mainnet; TVL Reaches $90M

July 14, 2024 Bitcoin.com

Embrace Privacy and Earn up to 150% APY With wZANO-USDT

May 21, 2024 Bitcoin.com

Allbridge to first begin repaying stuck bridge users after recouping funds

April 5, 2023 Coin Telegraph

Allbridge

The compensation process is expected to start next week, starting with users who had funds on the bridge “shortly before the shutdown.”

Users with funds stuck on the multichain token bridge provided by Allbridge are first in line to receive compensation under a recovery plan posted by the project following a recent exploit.

In an April 5 statement, Allbridge said it has already started a compensation process for users despite only “partly recovering funds” after it was hacked for roughly $573,000 on April 1.

“We will start with the bridge users whose transactions got stuck in pending due to the emergency shutdown,” Allbridge said, adding it will then compensate its liquidity providers (LPs).

We are committed to compensating our users affected by the exploit and are prepared to reveal our recovery plan.

Please check the latest announcement for details: https://t.co/h17VDKZ7H7
— Allbridge (@Allbridge_io) April 4, 2023

“We aim to fully compensate those victims of the exploit with funds available to us,” it wrote.

It noted that it enabled LPs to withdraw funds on April 2, with the majority withdrawing their assets from the pool. Some, however, could withdraw even more “due to the pool’s disbalance.“

Others could not withdraw “a reasonable amount” from the liquidity pool due to some users withdrawing more than their original balances and the hack’s impact on the pools.

An application form is currently being drafted for LPs who could not withdraw their assets, allowing them to apply for compensation and provide details of their losses.

The form is anticipated to be completed within the next two days. The compensation process is expected to commence next week, starting with users who “have used the bridge shortly before the shutdown.”

“All the affected parties by the exploit will be subject to additional rewards in the future, but compensation remains our main priority.”

The compensation plan comes after Allbridge tweeted on April 3 that 1,500 BNB (BNB), worth approximately $465,000, was returned to the project following a public proposal made to the hacker in an April 1 tweet.

The protocol’s exploiter seemingly accepted Allbridge’s offer of a “white hat bounty,” where they could keep a portion of the stolen funds in exchange for an assurance that no legal action would be taken.

Meanwhile, Ethereum-based noncustodial lending protocol Eurler Finance announced on April 4 that it recovered most of the $196 million stolen in a March 13 flash loan attack following successful negotiations.

The attacker managed to steal millions worth of Dai (DAI), USD Coin (USDC), staked Ether (stETH) and wrapped Bitcoin (WBTC) in the largest hack of 2023 so far.

Magazine: Crypto winter can take a toll on hodlers’ mental health

Tribe DAO votes in favor of repaying victims of $80M Rari hack

September 22, 2022 Coin Telegraph

Tribe DAO votes in favor of repaying victims of M Rari hack

Coin Telegraph

The vote to reimburse users affected by the hack was one of the final governance decisions for Tribe DAO which has announced plans to wind down.

After months of uncertainty, the Tribe DAO has passed a vote to repay affected users of the $80 million exploit on decentralized finance (DeFi) platform Rari Capital's liquidity pools.

Following several rounds of voting and governance proposals, Tribe DAO, which consists of Midas Capital, Rari Capital, Fei Protocol and Volt Protocol, took the decision to a vote on Sept. 18 with the intent to fully reimburse hack victims.

Data from on-chain voting platform Tally shows that 99% of those who voted were in favor and the proposal was executed on Sept. 20.

According to the description underneath the voting data, individual users will be paid back in FEI, while DAOs will be paid in DAI. Users would also have to sign a message releasing any liability.

Fei's founder Joey Santoro on Twitter said the payment would be made 24 hours after the passing of the vote.

1/ The Rari Fuse Hack Payment has passed on-chain to FULLY pay the victims in 24 hours.

This is a big moment in these final governance decisions of the Tribe DAO.
— Joey ’s ERC-4626 (@joey__santoro) September 19, 2022

The total payment amount is 12.68 million FEI which is trading at $0.97 at the time of writing and 26.61 million DAI which is trading at $1, according to data from CoinGecko.

The vote was one of the final governance decisions for Tribe DAO which has announced plans to wind down.

In their Aug. 20 proposal, they explained the "challenging macro environment" and "specific challenges such as Rari Capital's Fuse hack" were all factors in the decision.

"At this stage, a responsible choice for the DAO to consider is leaving the protocol in a state which would defend the FEI peg without the need for governance."

The whole process of reimbursing victims of the hack has been ongoing, with several rounds of voting through snapshot signaling polls and on-chain; however, none ended in a resolution for affected users.

In a Sept. 20 Twitter post Joey Santoro explained the challenges they all faced in coming up with a solution and hopes that other DAOs can learn from the incident.

"The biggest lesson here is that DAOs should not have to make decisions like this after the fact. An explicit upfront policy, ideally with on-chain enforcement, would have saved the DAO from needing to venture into uncharted governance territory."

6/
I hope everyone can take away these lessons and know that all of the stakeholders truly did their best in an unprecedented situation.
— Joey ’s ERC-4626 (@joey__santoro) September 19, 2022

Following the hack, a $10 million bounty was offered to the hackers but it was never disclosed if they responded.

Liquidity Pools