Metis to Compensate Users Affected by PolyNetwork Hack
Metis, a layer 2 scaling solution, has announced a plan to compensate users who were impacted by the recent PolyNetwork bridge hack. The project will distribute 117,000 METIS tokens to community members who suffered losses. Additionally, Metis is implementing an enhanced cross-chain architecture using LayerZero’s OFT model.
Recapping the PolyNetwork Exploit
In July, a hacker exploited the PolyNetwork bridge and drained liquidity pools of 8.8 million METIS tokens on Binance Smart Chain. Metis responded swiftly by removing liquidity from various decentralized exchanges (DEXes) to minimize the damage. As a result, the hacker was only able to steal 117,000 METIS tokens from users.
The exploit did not affect the total or circulating supply of METIS on Ethereum or Metis, but it did impact BSC users who faced difficulties with liquidity for swapping or trading after the hack. To address this issue, Metis will distribute 117,000 newly created rMETIS tokens as compensation.
Compensation via Vested Token Model
The rMETIS tokens serve as receipts for the 117,000 METIS allocated for compensation. These tokens will vest over time, starting at a ratio of 1:0.5 to METIS on September 14th, 2023. The ratio will gradually increase until reaching a full 1:1 parity after September 14th, 2024.
Affected users have until October 14th, 2024 to claim their rMETIS tokens and can redeem them at any point based on the vesting schedule. This compensation model aims to strike a balance between compensating unaffected users and restoring affected community members.
OFT Structure for Superior Cross-Chain Experience
Prior to the hack, METIS tokens on networks other than Ethereum and Metis were wrapped versions with lower security assumptions. To enhance the cross-chain experience, Metis has upgraded to LayerZero’s OFT architecture.
With OFT, real METIS tokens are available on chains such as BNB Chain and Avalanche. Users can earn native METIS rewards by supplying assets to specific pools. This upgrade also enables seamless Metis bridging without the need for liquidity pool requirements.
Hermes, Unimaia, Hummus, Netswap, and Hera are among the initial DEXes to offer trading in native Metis OFT tokens. Overall, the OFT structure enhances cross-chain operability within the Metis ecosystem.
Metis Supports Users and Improves Decentralized Ecosystems
Metis has taken decisive action to support users affected by the PolyNetwork exploit while also enhancing the cross-chain operability of its ecosystem. The vested token model ensures responsible compensation for impacted community members.
The transition to LayerZero’s OFT architecture provides a superior experience for METIS holders across multiple blockchains. With these efforts, Metis continues to work towards its goal of bridging Web2 and Web3 and enabling the next generation of decentralized applications.
Hot Take: Metis Prioritizes User Compensation and Cross-Chain Operability
Metis has demonstrated its commitment to its users by compensating those affected by the PolyNetwork bridge hack. Through a vested token model, affected community members will receive their compensation gradually over time.
In addition to addressing user concerns, Metis has upgraded its cross-chain architecture using LayerZero’s OFT model. This advancement allows for a superior cross-chain experience and opens up new opportunities for METIS holders on various networks.
By prioritizing user compensation and improving cross-chain operability, Metis is positioning itself as a leader in the crypto space, bridging the gap between Web2 and Web3 applications.
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