Exactly Community Initiates Proposal for Compensation to Affected Users of Hacker Attack

Exactly Protocol is a lending protocol built on Optimism. It experienced a security incident on August 1, 2023. As a result of this attack, its Total Value Locked (TVL) dropped from a peak of $39.53 million to $6.17 million.

The hack resulted in losses exceeding $7.6 million, and the fundamental reason the protocol was attacked is due to vulnerabilities in the DebtManager peripheral contract. Two attackers were involved in this attack, with the primary attacker obtaining 97% of the stolen assets, while another imitator stole approximately 3% of the assets. This attack impacted 117 accounts, with a total loss of $7,612,038. The top 10 affected accounts accounted for 84% of the total losses, with the largest wallet losing nearly $1.8 million, representing 23.3% of the total losses, and the second-largest wallet losing about $1.7 million, representing 22.19% of the total losses.

Exactly Protocol had previously offered a $700,000 reward for any information leading to the recovery of stolen funds and the arrest of the attacker. However, in a recent announcement on X platform, Exactly Protocol stated that it has been four weeks since the protocol was attacked, and the attacker has had enough time to do the right thing but has not communicated. As a result, Exactly Protocol mentioned that they have contacted the U.S. Department of Homeland Security (DHS), which has assigned a team of agents to the case. The attacker can still return the funds, but now it must be 100% of the stolen amount rather than 90%.

Yesterday, the Exactly community initiated a proposal for “compensating users affected by the hacker attack” to address the financial losses resulting from the security vulnerability that occurred on August 18, 2023.

The proposal outlines the distribution of 1 million EXA tokens among the 117 affected users. This distribution includes:

• 10% of the total supply of EXA tokens, which is approximately 20% of the total EXA token supply designated by the community.

• Unlocking: These tokens will begin to unlock in June 2024, following a linear unlocking schedule over 48 months, similar to the new EXA token unlocking plan.

Additionally, the proposal states that affected users will receive a Sablier NFT as proof of their claim for the allocated EXA tokens.

The community suggests that Exactly Protocol continues to maintain transparent and open communication to keep users informed about the progress of the Department of Homeland Security's investigation.