Platypus Offers 78% Return of Funds After DeFi Attack
• Platypus, a decentralized finance (DeFi) protocol recently suffered a $9.1 million exploit due to a logic error in the USP solvency check mechanism within the collateral-holding contract.
• The exploit resulted in three separate attacks with nearly $8.5 million, 380,000 and $287,000 stolen in each attack respectively.
• Platypus has now outlined a compensation plan for victims which seeks to return roughly 78% of the main pool funds by reminting frozen stablecoins.
Platypus Exploit Details
DeFi protocol Platypus has disclosed details of a recent $9.1 million exploit, alongside its efforts to recover the funds and a compensation plan for victims. In a Medium post on Feb 23rd, the company revealed that a logic error in the USP solvency check mechanism within the collateral-holding contract was responsible for three separate attacks carried out by the same exploiter. Stableswap operations were not affected.
Several stablecoins and other assets were stolen in these attacks; approximately $8.5 million in assets were stolen during the first attack while 380,000 where mistakenly sent to Aave v3 contract during second attack and third attack saw theft of around $287,000 worth of assets stolen from it.
Platypus’s recovery plan will see at least 63% of main pool funds returned back while 2.4 million USD Coin (17.7% pre-attack assets) have been recovered so far with another 1.4 million (10.4% pre-attack assets) being used to compensate victims from treasury reserves as well as minted new tokens for further compensation purposes for those affected by this incident..
The compensation plan will also involve freezing all pooled funds until completion which is expected to take place within upcoming 7 days after which user balances will be reinstated allowing users to make withdrawals from their accounts with any remaining balance then going towards compensating victims who lost their funds due to this exploit .
Overall this incident highlights importance of security measures when it comes to DeFi protocols as such incidents can easily lead to loss of millions worth of crypto assets if not handled carefully or exploited correctly