- Balancer protocol has recovered nearly $28 million from the early November breach. The platform managed to do it with the support from internal emergency actions and white-hat contributors.
- Balancer plans to compensate affected users in the exact rescued tokens and reward white hats with 10% bounties.
Balancer, a popular decentralized finance platform, has put up a plan in order to compensate users that suffered loss due to the hack that happened earlier in the month.
The hack happened on the 3rd of November, and according to Tronweekly, the hack caused the platform to lose about 6,850 OSETH, 6,590 WETH, and 4,260 wstETH, which made a total of more than $128 million being drained from multiple liquidity vaults. Today, which makes it 26 days after the hack, the platform has proposed to compensate all the users that suffered loss.
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How Balancer Retrieved $28M and Its Structured Recovery Plan
According to the proposal, the money that would be distributed was retrieved through a mix of internal emergency procedures and some external assistance from white hat actors. So far, they shared that the total amount of money recovered is almost $28 million, and a significant portion, about $19.7 million worth of osETH and osGNO, is held under the management of the liquid staking platform StakeWise.
The distribution method will also follow a pro rata approach. That is, the process would ensure that every eligible liquidity provider receives a share of the recovered tokens based on their Balancer Pool Token (BPT) balance at the moment when the breach occurred.
Importantly, all the reimbursements will be made using a payment-in-kind format, meaning that liquidity providers will receive the exact type of tokens that were initially rescued, rather than a converted or substituted asset.
In addition to compensating liquidity providers, Balancer’s proposal outlines rewards for the white hat actors that played crucial roles in reducing losses. It was recorded that six individuals participated in the rescue efforts, and together, they managed to secure $3.86 million during the incident. Balancer plans to issue 10% bounties to these contributors, which is capped at $1 million per recovery operation.
To be eligible for their bounty payouts, white hats must undergo identity verification, know-your-client checks, and sanctions compliance through Balancer’s SEAL Safe Harbor Agreement, a framework that is designed to legally protect ethical hackers who assist during emergencies.
Source: forum.balancer
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