JulSwap Announces Compensation Package to Aid Flash Loan Losses

Following a flash loan exploit last week, the value of Just Liquidity ($JUL) and Just Liquidity Binance ($JULB) has crashed by ~80%.

By
Robert D. Knight
on
May 31, 2021
Category:
BSC News

Introduction

The price crash coincided in a bad week for flash loan exploits on BSC, as BurgerSwap also suffered an attack to the value of $7.2 million. JulSwap has now set out parogram of reparations for its community, detailing how it plans to make amends.

Not a good week for JulSwap tokens

The Support 

To help users who lost considerable value when the price of $JUL and $JULb crashed, JulSwap has taken a snapshot of what users were holding before the exploit. Those users who qualify will have the opportunity to earn JulD in a 400% APR contract. To avoid advantaging users who bought JUL/JULb on a purely speculative basis following the price crash, the price of the $JulD will be based on the 5 day average price from before the crash.

JulSwap also intends to send each user between 100 and 300 NFT cards for every JULb which was in their wallet at the time of the snapshot. The NFT cards can then be used to stake and lock the JulD. Users can then stake as much JulD as NFT staking cards, incentivizing the purchase of JulD. Each time a JulD is staked an NFT card will be burned in the transaction.

Users who are not interested in the 400% APY can instead simply sell the NFT staking cards they receive, allowing them to gain instant compensation. JulSwap hopes that the mechanism they have chosen will place strong value on the NFT cards since the staking pool can only be accessed in this manner.

All users who wish to receive their JulD must send their JUL and JULb to the contract address and will receive their new tokens in a matter of days. For further details and the contract address please see the Just Liquidity blog.

Conclusion

Flash loan attacks and other attacks have been prevalent in May, but with this set of steps JulSwap is trying to set things right with their community. While prevention is better than cure, these measures will go some way to restoring trust between JulSwap and token holders.

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Robert D. Knight

Robert D. Knight is an experienced journalist and copywriter who has been working in crypto for 4+ years. His bags are heavy and he also hodls some cryptocurrency.

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