Platypus Launches Compensation Portal for Users Following $9.1M Hack

DeFi protocol Platypus outlined a plan in its recent compensation portal to reimburse users up to 78% of main pool funds.

Platypus Finance has created a compensation portal for users following the recent $9.1 million exploit. According to the decentralized finance (DeFi) protocol, this portal lets users view how much the platform owes them. Furthermore, the Platypus team added that should users discover calculation errors, they must submit the related evidence alongside a form before Friday.

The Platypus compensation portal follows a February 23rd announcement that the team would return around 78% of the main pool funds. This refund is reportedly possible for reminting frozen stablecoins. Last week, Platypus said:

“We are currently discussing with various parties to help recreate stablecoins that were trapped in the attack contract. Once any stablecoins are retrieved, we will distribute the reminted tokens to LPs on a pro-rata basis.”

Furthermore, the decentralized finance network also added that it was collaborating with the Aave protocol to recover locked funds. However, Aave’s governance forum would first vote on the proposal to retrieve the locked assets worth $380,000.

“If our proposal submitted to Aave is approved and Tether confirms reminting the frozen USDT, we will be able to recover approximately 78% of the user’s funds.”

Platypus also planned to “create a recovery contract that will transfer the exploited funds from the Aave pool to [its] contract.”

At the time, the Platypus team also confirmed two more loss incidents that resulted in another $667,000 exploited. According to Platypus, the second attack bled roughly 380,000 in assets from the protocol, while the third hack drained approximately $287,000. Altogether these losses amounted to a total of $9.1 million.

Platypus Compensation Portal Details Reimbursement Plans

The recently launched Platypus compensation page contains information, including how much compensation users can access. This information is further broken down into adjustments on the sum overview and its pre-attack and post-attack net values.

Furthermore, the DeFi protocol said calculations of reimbursements would finalize upon receipt of all user feedback. In addition, users could claim the first batch of compensations in March.

In the meantime, French police arrested two people connected to the exploit and confiscated roughly $222,000 worth of digital assets last Saturday. Platypus said the arrests received the support of leading crypto exchange Binance and digital currency sleuth ZachXBT.

Hack

Platypus suffered a flash loan hack on February 16th, which saw its Platypus USD (USP) stablecoin break its US dollar peg. At the time, the DeFi protocol confirmed an initial loss of $8.5 million from its main pool. In a February 17th tweet, Platypus said:

“Our protocol was hacked recently, and the attacker took advantage of a flaw in our USP solvency check mechanism.”

The DeFi protocol also added that the attack exploited a logic fault in the USP solvency check mechanism. This compromised solvency check mechanism resides in the contract that holds the collateral, Platypus explained.

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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.