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ParaSwap DAO Votes to Support Hack Victims
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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.
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.
ParaSwap’s Road to Recovery
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.
However, 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.
Read more: Crypto Project Security: A Guide to Early Threat Detection
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.
The DAO’s proposal supported overwhelmingly with a 96.81% agreement rate, will include unused wETH/ETH accumulated by the DAO (approximately 150 wETH) and accumulated FTM from Fantom’s Gas Program (27,207.53 FTM) in the grant. At the time of writing, the assets were worth $567,426.
“In the future, the [ParaSwap] Foundation will share the next steps needed by affected users to receive the compensation if they are eligible for it,” ParaSwap said in their official statement.
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.
Read more: Top 5 Flaws in Crypto Security and How To Avoid Them
Furthermore, a recent report from Cyvers disclosed that the total stolen value in the first quarter of 2024 is nearing $739.7 million.
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