Overcoming hostile takeover efforts, Indexed Finance protects $120,000 in assets and becomes more potent in DeFi governance.
Two hostile takeover attempts against Indexed Finance’s Decentralized Autonomous Organization (DAO) have been successfully thwarted. This blockchain-based company, the target of a huge $16 million hack in 2021, has been threatened by attackers who want to take control of its coffers.
However, the neighborhood’s alertness and cunning actions guaranteed its security, preserving goods valued at roughly $120,000. The first hint of danger was when an attacker submitted a hidden proposal to take control of the system using substantial holdings of the NDX token.
With no title or description, this maneuver almost went unnoticed. However, the Indexed community quickly mobilized, spearheaded by former core contributor Laurence Day.
Less than an hour before the attack may have been successful, they marshaled a strong counterattack and cast enough no votes. Day and the others got ready because there would probably be another attack.
They expected another try, taking advantage of a known weakness that may jeopardize money that wasn’t just in the immediate treasury. They decided to take a defensive stance and propose a “poison pill.”
This strategy would make it possible to burn Treasury funds—a harsh step to ward against future attacks.
Indexed Financial Agreements and Settlements
A second threat indeed emerge, this time, the aggressor felt more confident and tried to negotiate directly, requesting a significant share of the money.
Indexed founder Dillon Kellar responded with a calculated offer that was only a small portion of the demand and a clear deadline. As time ran out, the assailant gave in, took the $10,000 counteroffer, and withdrew.
The Indexed team modified their approach in reaction to these risks. Instead of implementing the “poison pill” plan, they gave a 2/3 multisig control over the timelock.
Under the direction of Day, Kellar, and the anonymous co-founder PR0, this multisig is a calculated move toward increased security and stable governance.
With this bold move, Indexed’s turbulent past concludes, and the community has grown stronger and more unified in the face of hardship. The emphasis of Indexed Finance changes from defense to reparation, with a particular focus on community healing and trust-building.
This episode shows the Indexed DAO’s tenacity and camaraderie and emphasizes how security and governance in the DeFi area are always changing. With measures in place to compensate victims and the attackers thwarted, Indexed Finance envisions a future in which similar tragedies serve as lessons for more resilient and secure decentralized financial systems.
