ParaSwap Compensates Users After Recent Hack
ParaSwap, a DeFi aggregator, is taking action to support users affected by a recent contract vulnerability. On April 6, 2024, the ParaSwap DAO approved a proposal to compensate victims of a March 2024 hack, utilizing funds from their treasury.
ParaSwapโs Response to the Hack
On March 20, 2024, ParaSwap immediately responded to the exploitation by pausing its API and removing V6 contracts. White hat operations successfully recovered $3.4 million, preventing further harm to ParaSwap users.
- However, two categories of users were still impacted:
- Pre-white hat victims lost a total of $24,000.
- Post-white hat asset depositors lost around $340,000.
Recovery Effort and Compensation Plan
After a thorough investigation, ParaSwap proposed a grant request on April 4 to refund users whose funds were not recovered by white hat actions. The DAO proposal received overwhelming support, with a grant including unused wETH/ETH and FTM from Fantomโs Gas Program, currently valued at $567,426.
ParaSwap stated, โIn the future, the Foundation will share the necessary steps for affected users to receive compensation if eligible.โ
DeFi Space Braces for Impact
Despite ParaSwapโs incident, the DeFi and crypto sectors saw multiple hacks in March. Notable among these was the Prisma Finance hack, resulting in an $11 million loss.
A recent report by Cyvers revealed that the total stolen value in the first quarter of 2024 approached $739.7 million.
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