Peer-to-peer coverage market Cover Protocol has published a compensation plan for tokenholders and liquidity providers affected by the recent hack. As part of the process, the Cover Protocol team took a snapshot at block height 11,541,218, the last transaction block before the exploit began.

Eligible liquidity providers on Uniswap, SushiSwap and Balancer will receive new COVER tokens based on their share of the liquidity pool on those platforms. Liquidity providers on the first two platforms will also receive a share of the Ether (ETH) returned by “white hat” exploiters like Grap.Finance.

The compensation plan also revealed that tokenholders will receive new COVER coins on a one-to-one ratio with their initial wallet balance before the hack. Commenting on the reimbursement for coins held on centralized exchanges, Cover Protocol stated:

“We are working with centralized exchanges to reward users who had $COVER in their balances at the abovementioned block number with the new $COVER token (1:1).”

Meanwhile, Binance says it will recompense customers whose COVER tokens became worthless following the exploit on Monday. Announcing the plan on Thursday, Binance revealed that the $10 million compensation will come from the platform’s SAFU Fund split between Binance USD (BUSD) and Ether.

According to the exchange, the decision was reached based on the fact that a majority of Binance users affected by the hack were not covered in the Cover compensation plan. Binance pledged to reimburse about 8.17 million BUSD and 2,581.16 ETH for a total of about $10.1 million.

Cover Protocol suffered an infinite minting attack

As previously reported by Cointelegraph, Cover Protocol suffered an infinite minting attack that triggered a price crash. Several entities exploited the vulnerability, with the first attacker reportedly draining over $4 million from the protocol.

In its report on the hack, the Cover Protocol team revealed that it was monitoring the address of the first attacker as well as other participants in the exploit.

The spate of successful attacks against decentralized finance projects in 2020 remains a source of concern. Indeed, while crypto crime declined during the year, the DeFi space contributed to over half of all thefts and hacks in the second half of the year.

Source: COINTELEGRAPH

Also Read:- 2020 saw cryptocurrencies in India gaining momentum

Crypto Tax In India Guide

Tax on Cryptocurrency In India – Complete Guide 2022

Wondering how taxation on crypto works in India? How much do you have to pay tax on cryptocurrency in India? How 1% TDS is levied on crypto? Don’t worry we ...
Read More
shutterstock 659324809 1 1U2yg5

New Cryptocurrency Bill Advances to Senate in Brazil

A new cryptocurrency bill was approved by the Chamber of Deputies of the Brazilian Congress last week, and is now awaiting review by the Senate for approval. The project, if ...
Read More
shutterstock 2041962896 6krKZj

USDC Sees Native Launch on Avalanche

USDC, the second leading stablecoin by market cap, has been launched on the Avalanche blockchain as a native token. Previously, users wanting to get USDC in Avalanche had to bridge ...
Read More
zztidodf pkpJUN

Crypto Lender Nexo Launches NFT Lending Desk, Loans up to 20% for Popular NFTs

On December 16, the blockchain-based lending platform Nexo announced the firm has launched a non-fungible token (NFT) lending desk. While the company offered crypto-backed loans using tokens like bitcoin and ...
Read More
ffffffadidas VCTXpR

Adidas Reveals the Originals NFT Collection With Punks Comics, Gmoney, Bored Apes

On Thursday, the German multinational corporation Adidas announced the launch of the company’s first Adidas Originals NFT collection. The Adidas Originals NFT drop is in partnership with the Bored Ape ...
Read More
Share with Others