Platypus, a decentralised finance (DeFi) protocol for stablecoins, has unveiled its recovery plan to return around 63% of funds to its users. The protocol suffered $9.1 million worth losses recently due to an exploit, as stated by Cointelegraph .
Through a blog post, Platypus stated that a logic issue around the USP solvency check mechanism, based on the collateral-based contract, was to blame for the three respective attacks. It was also highlighted that there were no effects on the performance of stableswap.
On the basis of information by Cointelegraph, the first attack drained a total of $8.5 million assets. Second attack reportedly transferred 380,000 assets to lending protocol Aave. Nearly $287,000 worth of assets was stolen in the third attack. The company disclosed that after the attack, around 35.4% of the funds remained in the pool, and 2.4 million USD Coins were retrieved. Furthermore, 1.4 million (10.4% of pre-attack assets) in the treasury is expected to be used to reimburse LP’s losses within six months, if the hijacked funds aren’t recaptured.
Moreover, Aave protocol is collaborating with Platypus to get back $380,000 worth locked assets.
“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,” the company disclosed. Insights from CoinGecko mentioned that a consequence of the attack has been the depegging of Platypus USD (USP) stablecoin from US dollar, plunging to nearly $0.32.
(With insights from Cointelegraph)