Cream Finance, a decentralized finance (DeFi) protocol, will reimburse its users after an $18.8 million flash loan hack on Aug. 30. The DeFi protocol has identified the AMP integration error that caused the loss.
Cream has released a post-mortem on the AMP flash loan hack, offering to replace the stolen Ether (ETH) and Amp (AMP) tokens by dedicating 20% of all protocol fees until the debt is fully redeemed.
To secure the debt, Cream will deposit collateral with necessary parties at AMP and its inventors, Flexa digital payments network.
The newest flash loan exploits, according to the post-mortem study, was the first time Cream Finance had been directly exploited, with the company losing 462 million AMP tokens and 2,800 ETH.
Cream discovered the exploit was caused by an error in the protocol’s integration of AMP with the help of blockchain security firm PeckShield. Cream stated, “While unfortunate and disappointing, we accept responsibility for the error.”
Cream detected a tiny copy-cat attack from an address with transaction history on the Binance crypto exchange, in addition to the major hack. Cream and the crypto trading platform are now working together to find the second perpetrator.
Cream said it will work with authorities to track down the attacker and prosecute him “to the fullest extent of the law.”
If the exploiter decides to return the stolen funds, the compromised protocol will reward them with a 10% bug bounty.
“If anyone can identify the exploiter and provide information that leads to his or her arrest and prosecution, we will share 50 percent of all funds returned,” Cream added.
Cream terminated supply and borrow contracts on AMP on Aug. 30 to prevent the attacker from gaining access to over $19 million in AMP and ETH by reborrowing assets in just 17 transactions, as previously reported.
Both CREAM, Cream’s native token, and AMP decreased in value as a result, with AMP falling roughly 13%.
Following the hack, the impacted tokens’ prices continued to fall. According to CoinGecko, CREAM is trading at $159 at the time of writing, down 11% in the last seven days. AMP token is down nearly 15% over the same period, trading at $0.052525.
