{"id":137889,"date":"2020-12-20T18:24:14","date_gmt":"2020-12-20T15:24:14","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/after-exploit-warp-finance-compensation-plan-takes-promising-strides\/"},"modified":"2020-12-20T18:24:14","modified_gmt":"2020-12-20T15:24:14","slug":"after-exploit-warp-finance-compensation-plan-takes-promising-strides","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/after-exploit-warp-finance-compensation-plan-takes-promising-strides\/","title":{"rendered":"# After exploit, Warp Finance compensation plan takes promising strides"},"content":{"rendered":"

“# After exploit, Warp Finance compensation plan takes promising strides <\/strong>”
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In a blog post on Saturday night, Warp Finance \u2014 the latest decentralized finance (DeFi) protocol to suffer a smart contract exploit \u2014 announced promising strides towards recompensating users following a nearly $8 million flash loan attack.\u00a0<\/p>\n

As Cointelegraph reported on Friday, the DeFi protocol, which offers stablecoin loans on liquidity pool token collateral, lost $7.7 million in USDC and DAI when an attacker used multiple flash loans to create liquidity pool tokens, manipulate Warp\u2019s price oracles, and drain Warp\u2019s stablecoin coffers. <\/p>\n

Following the attack, a group of whitehack hackers convened to assist the protocol in assessing the damage and creating a fix for the exploit \u2014 and, in this case, recovering a portion of the lost funds.<\/p>\n

In a post titled, \u201cExploit Summary & Recovery of Funds,\u201d the Warp team notes that they could not liquidate the attacker\u2019s loan due to the manipulated oracle, but with the help of the whitehat team managed to reclaim the liquidity pool token loan collateral. <\/p>\n

\u201cThe loan collateral has since been secured by the warp finance team and will allow us to return app<\/a>roximately 75% of users\u2019 deposited funds, thanks to support from the Ethereum and white hat community,\u201d said the team. <\/p>\n

The post said that the team will disburse funds to affected users on Dec 21st, 2020, and invited users to independently confirm that the snapshot they took of addresses is correct. <\/p>\n

The team also doubled down on a complete compensation plan, promising the distribution of IOU tokens that will have some future utility to cover the remaining 25% loss:<\/p>\n

\u201cWhile we are relieved that lost funds have been partially recovered, we see this only as a first step to making Warp Finance users whole. For this reason we will issue Portal IOU tokens to every affected user. The end goal of the IOU token is to fully refund users, and potentially even giving them a profit on what they initially deposited.\u201d<\/p>\n

The Warp team\u2019s devotion to completely covering user losses is part of what may be becoming a promising trend across exploited DeFi protocols.\u00a0<\/p>\n

In a previous interview with Cointelegraph, semi-anonymous core developer for Cover \u2014 a project offering \u2018cover,\u2019 and insurance-like product for DeFi users \u2014 said that developers taking responsibility for losses will ultimately push the space forward:<\/p>\n

\u201cI believe protocols (and their auditors) need to start taking responsibility for the code they push out,\u201d he said. \u201cWhether it is through they themselves providing coverage, or reimbursing funds, this type of behavior sets a strong precedent and allows users to feel more confident in the platforms they use, which helps boost TVL, so a win-win.\u201d<\/p><\/blockquote>\n<\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“# After exploit, Warp Finance compensation plan takes promising strides ” In a blog post on Saturday night, Warp Finance \u2014 the latest decentralized finance (DeFi) protocol to suffer a smart contract exploit \u2014 announced promising strides towards recompensating users following a nearly $8 million flash loan attack.\u00a0 As Cointelegraph reported on Friday, the DeFi…<\/p>\n","protected":false},"author":1,"featured_media":137890,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/703f670d-dcb9-4973-bed0-7f5e0cdb2878.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74868,74891,74882,70944,73808],"class_list":["post-137889","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-defi","tag-ethereum","tag-hacks","tag-hackers","tag-loans"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/137889","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=137889"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/137889\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/137890"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=137889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=137889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=137889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}