The Battle Against Malicious Proposals
Indexed Finance, a blockchain-based entity that was previously hacked for $16 million, recently faced two takeover attempts on its Decentralized Autonomous Organization (DAO). The first attempt came from an attacker who held a significant amount of the protocol’s NDX token. The community quickly mobilized and successfully defended against the attack. Anticipating another attempt, the Indexed team prepared a defensive strategy known as a “poison pill” proposal to deter future attacks.
Indexed Finance Negotiations and Resolution
A second threat emerged, and this time the attacker sought direct negotiation to obtain a portion of the treasury. Dillon Kellar, a founding member of Indexed, countered with an offer that the attacker ultimately accepted. In response to these threats, the Indexed team adjusted their strategy by transferring control of the timelock to a 2/3 multisig for greater security and governance stability.
This decisive action marks the end of a challenging period for Indexed Finance. The focus now shifts to healing and rebuilding trust within the community. This incident highlights the resilience and solidarity of the Indexed DAO and underscores the importance of security and governance in the DeFi space.
Hot Take: Indexed Finance Overcomes Takeover Attempts and Strengthens Community
Indexed Finance successfully defended against two takeover attempts on its DAO, demonstrating the vigilance and strategic maneuvers of its community. By swiftly mobilizing against malicious proposals and implementing a defensive strategy, Indexed Finance protected its assets and ensured its safety. The negotiations with the attackers resulted in a resolution that allowed the community to retain control of its treasury. This episode highlights the evolving nature of security and governance in DeFi and showcases the resilience and unity of Indexed Finance’s community.
Source: Coingape
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