Cream Finance, a decentralised finance (DeFi) protocol, intends to remunerate its users following a $18.8 million flash loan hack on August 30.
Decentralized finance (DeFi) protocol Cream Finance is planning on reimbursing its users after a $18.8 million flash loan hack that happened on Aug. 30. Cream has issued a post-modern to the AMP flash loan exploit assuring to replace the stolen Ether (ETH) and Amp (AMP) tokens by allocating 20% of all protocol fees until the debt is paid completely.
Cream is planning on posting collateral with relevant parties at AMP and its creators, Flexa digital payments network, to secure the debt. Based on the post-mortem report, the new flash loan exploit was the first time Cream finance went through a direct exploit, losing 462 million AMP tokens and 2,800 ETH. Through the help of Blockchain security firm PeckShield cream came to know that exploit happened due to an error in the way the protocol integrated AMP. “While unfortunate and disappointing, we take ownership of the error,” cream stated.
Cream also came to realize that an incident happened somewhat similarly from an address with transaction history on Binance crypto exchange. The crypto trading platform is now working with Cream to catch the second preperator. Cream stated that it will be working with authorities to catch the attacker and work with law enforcement authorities to prosecute “to the fullest extent of the law.” The hacker protocol granted a 10% bug bounty to the exploiter if they decide to send back the stolen funds. “If anyone is able to identify and provide information leading to the arrest and prosecution of the exploiter, we will share 50% of all funds returned,” cream stated.
Cream stopped supply and borrow contracts on AMP on Aug. 30 to stop the exploit that gave the attacker to get access to almost $19 million in AMP and ETH through carrying off assets in only 17 different transactions. Prices of both Cream’s native token, CREAM and AMP will be eventually dropped with AMP dropped by 13%. The tokens which were affected were declining price after the attack. During the time of the writing, CREAM traded at $159, down by 11% last seven days. AMP token is down by almost 15% over the same period trading at $0.052525.