Following a critical vulnerability on the ParaSwap AugustusV6 contract, ParaSwap’s DAO has decided to use treasury cash to repay hack victims.
On April 4, the ParaSwap decentralized autonomous organization (DAO) proposed to use its treasury funds to reimburse the AugustusV6 contract vulnerability victims.
Following a three-day voting period, 96.81% of ParaSwap voters approved the DAO’s suggested payout structure for users.
On March 18, the ParaSwap AugustusV6 contract went live briefly to decrease gas costs and increase switching efficiency. Nevertheless, a severe flaw in the contract allowed hackers to siphon money from consumers who gave their approval for the update.
A quick rewind saved the loss of $3.4 million in assets, but it also cost about $864,000 in missed revenue. ParaSwap worked with Chainalysis and TRM Labs, two blockchain analytics and security companies, to find the hacker addresses and track the money flow. According to the foundation:
“The (ParaSwap) Foundation will cover the remaining costs linked to the vulnerability, including the refunds, the engagement of security analysts, conducting thorough contract re-audits, communication with authorities, and the formulation and execution of the refund process.”
ParaSwap declared the retrieval of assets valued at about $500,000. “The amount of funds still unaccounted for—which comprise users drained after depositing to a still compromised account—has decreased by 63% as a result of this rescue,” the statement stated.
Giving impacted users their whole refunds is a step toward ensuring the enterprise’s long-term viability, according to ParaSwap.
PeckShield, a blockchain security company, published statistics showing that about $100 million in digital assets taken in attacks in March were found.
Even though there were millions of dollars in damages, 52.8% of the stolen money was recovered. The nonfungible token (NFT) game Munchables, which is based on the Blast network, was the source of most of the recovered cash.
