Warp Finance makes a successful re-launch after it was attacked with a flash loan attack and managed to reimburse the hacked funds so let’s read more in today’s cryptocurrency news.
Warp Finance is a protocol enabling liquidity provisioning tokens that are used as collateral for stablecoin loans. As per the announcement, Warp Finance makes a successful re-launch after it was attacked with a flash loan attack which is an increasingly prevalent problem in the DeFi space where hackers are able to cheat the protocol and pull huge amounts of money out of it. Warp carried out a fast response to this hack and re-secured its platform and reimbursed the funds as well.
We have disbursed an additional 10,401 DAI and 7504 USDT recovered from loans on v2 to users.
— warp.finance (@warpfinance) February 6, 2021
In order to ensure that it is protected against future flash loan attacks, Warp Finance demanded a security review from n-Var to audit its reworked code. The main goal was to identify resolutions for the flash loan attack as well as to ensure that the security of updates to Warp’s price oracles is done. The n-Var security audit reviewed the price oracle regarding the way it determines the value of the LP tokens. The identified fix to the problem was to switch from the Uniswap price oracles to LINK price oracles and the result is the correct valuation of LP tokens and protection against similar flash loan attacks.
Warp was able to reobtain most of the lost funds and returned them to the users. In order to make up the remaining losses, Warp Finance started offering a new portal IoU token with a total supply of 7,760,241 so that 1 Portal IOU token is redeemable for 0.001449697206 Warp token. This token will then be awarded to users that deposited stablecoin funds that were not fully recovered. The tokens will be exchangeable for Warp Tokens with the chance of having a bonus Warp Token so users till waiting until the next six months for the vesting period to be completed.
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To ensure community confidence in their new security measures as well as the overall satisfaction with the Warp Protocol design, the platform opened the chance for users to test and perform community reviews of the platform which will involve comprehensive user feedback. The platform made a fast and efficient sweeping recovery after the flash loan attack so with the new measures in place, it was able to resume full operations in a very short time.
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