The developers of the decentralized finance protocol Harvest Finance are launching a program to compensate the losses of users affected by the recent hacker attack.
On October 26, hackers conducted a successful attack on Harvest Finance, using an instant loan to manipulate the prices of fUSDT and fUSDC. After the attack, the FARM token exchange rate collapsed by 65% in just an hour.
Initially, Harvest Finance offered a reward of $100,000 to anyone who could convince the attackers to return all the stolen funds. Then the amount of remuneration increased to $1 million, but not all community members took this decision with enthusiasm, considering that this amount is better spent on payments to affected users.
Later, the developers of Harvest Finance wrote on Twitter that the payment of compensation will be made in special GRAIN tokens. They will be credited to users ‘ accounts in proportion to the losses incurred. For example, if a person has lost 100 USDC, they will get 7.39 USDC or USDT and about 92.6 GRAIN. The project will distribute among the victims about $ 2.5 million, which was returned by the attackers to the address of the developers in the form of USDT and USDC tokens.
The management of Harvest Finance added that the distribution will be based on the amount of $33.8 million. Earlier it was reported that the attackers managed to withdraw more than $24 million, but this amount was later recalculated. GRAIN tokens can be used for staking on the Uniswap decentralized exchange and receive rewards in FARM tokens. The developers will continue to test the system and will publish detailed information later.
According to DeFi Pulse, in October, the value of assets in the Harvest Finance protocol reached $700 million. To date, the indicator
decreased to $480 million. However, this DeFi project ranks eighth in the DeFi Pulse ranking for the total value of blocked assets.