DeFi aggregator ParaSwap to Compensate Hack Victims with Recovery Fund
Monday, 8 April 2024, 11:32
ParaSwap Hack Updates: DAO Approves Recovery Fund for Victims
DeFi aggregator ParaSwap is taking decisive action to support users affected by a recent contract vulnerability. On April 6, 2024, the ParaSwap DAO approved a proposal to compensate victims of a March 2024 hack. The compensation will come from their treasury funds.
ParaSwap's Road to Recovery
- The vulnerability discovered in the Augustus V6 contract led to the loss of user funds. While white hat operations recovered a significant amount, some users remained affected.
- On the day of the exploitation, March 20, 2024, ParaSwap took immediate action, pausing its API and removing V6 contracts. The white hat recoveries managed to secure a total of $3.4 million plus reduce any future ParaSwap users from being affected.
- The vulnerability still affected two categories of users. The first category includes pre-white hat victims, who lost a total of $24,000. The second category comprises post-white hat asset depositors, who lost approximately $340,000.
- Following a detailed investigation and recovery effort, ParaSwap published a proposal on April 4 to request a grant from the DAO to help refund users whose funds were not recovered by white hat actions.
Besides the ParaSwap incident, the DeFi and crypto spaces experienced several hacks in March. One of the most notable hack incidents was Prisma Finance, which resulted in a loss of $11 million.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.