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ParaSwap DAO allocates funds to compensate hack victims

TL;DR

  • ParaSwap DAO has agreed to a proposal to compensate victims of the AugustusV6 contract breach from its treasury.
  • Recovery efforts and progress updates.

The ParaSwap DAO community has agreed to use the funds in its treasury to compensate hack victims. The proposal was submitted by the ParaSwap decentralized autonomous organization (DAO) on April 4, bringing the idea of using the funds to refund the AugustusV6 contract victims.

ParaSwap DAO agrees to compensate victims

The community came to a consensus three days later with about 96.81% of the voters in favor of compensating the victims affected by the hack.

The Result of the vote on the ParaSwap community. Source: vote.paraswap.network

The ParaSwap AugustusV6 contract, which was proposed to reduce gas fees and increase swapping efficiency, was launched momentarily on March 18. However, there was a slight vulnerability in the upgrade that allowed hackers access to it, draining funds from the accounts of users who approved it. Although the platform was able to deploy a soft rollback to block an excessive loss of about $3.4 million, the hackers were still able to cart away with more than $864,000.

After the hack, the ParaSwap Foundation released a statement saying that it is in communication with analytics firm Chainalysis and TRM Labs. The statement noted that the Foundation was working with the platforms to identify the hacker’s wallet address and trace the movement of the fund. Furthermore, the foundation promised to cover the funds linked to the breach including communications with authorities, payments for contract re-audits, and the process involved in refunding.

Recovery efforts and progress updates

On April 4, the Foundation released an update noting that they have been able to recover about $500,000 of the stolen funds. The foundation clarified that even though the total stolen funds at the time were not properly accounted for, they have recovered 63% of it.

According to the platform, refunding users affected by the breach is the right step towards the platform’s sustainability. Hackers did not generally experience a high degree of success in getting away with stolen funds in March. According to data from blockchain security platform PeckShield, more than $100 million stolen via hacks were recovered last month. While the total accumulated stolen funds were in the millions, around 52% of them were recovered. In its data, the platform noted that most of the recovered funds were tied to funds stolen from Munchables, a game developed on the Blast network.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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