ValueDeFi Begins Compensation Plan Following String of vSwap Hacks

The BSC project is trying to earn the good will of investors back after the unfortunate exploitation.

By
Wilfred Victor
on
May 19, 2021
Category:
BSC News

The Commencement

ValueDeFi has commenced compensation plans for the pools exploited in the recent strings of hacks. The move aims to restore users’ confidence as hacks are becoming quite rampant with the project.


The Compensation Plan and Detailed Summary

After a series of hack events involving human and smart contract errors, which started late last year in November 2020, the ValueDefi team has commenced a compensation plan for affected pools.

ValueDefi


In their post detailing the compensation plan, the team breaks down the figures, the affected pool, and allocates reserved funds.


Summary of Losses and Planned Compensation

The Losses:

Recap: Total Losses

  1. Total loss at vBSWAP/BUSD 98/2 profit sharing pool:
  • vBSWAP - 7,342.75
  • BUSD - 205,659.22
  1. Total loss at vBSWAP/WBNB (70/30) + vBSWAP/BUSD (98/2) + BDO/vBSWAP (70/30) pools + WBNB vault:
  • vBSWAP - 8,713.693815425671
  • WBNB - 8,888.38352660905
  • BUSD - 39,295.38534264648
  1. Total loss at gvVALUE/BUSD (98/2) + gvVALUE/BNB (50/50) + VBOND/gvVALUE (60/40) pools:
  • gvVALUE-B - 2,557,651.422062519
  • WBNB - 1,745.2313015839943
  • BUSD - 223,203.6251411501
  • VBOND-B - 945,497.6497149196


The First Compensation Plan:

Recap: Total amount to be compensated

  • vBSWAP - 16,056.443815425671
  • BNB - 10,633.6148281930443
  • BUSD - 468,158.23048379658

All vBSWAP users will be compensated with 3,056.443815425671 from the Reserve Fund and 13k vBSWAP extra mint.

  • 174,055.488635629258637 BUSD left from the Reserve Fund will be used. Hence each user will receive 37.17% of their original BUSD; the remaining compensation amount will be in IOU token, with more details later.
  • The team will use 564.333900676476538 BNB left from the Reserve Fund. Hence each user will receive 5.3% of their original WBNB; the remaining compensation amount will be in IOU token, with more details later. 


Community Reactions

There haven’t been too many reactions as regards the compensation plan due to a handful of factors: 

  • The market is down considerably from its last high, and it continues on a downward spiral. This means the general mood for crypto is tilting towards bearish as the public sentiment is down, hence the very low reactions from CT users.
  • ValueDeFi has lost a lot of confidence from users already. Thus, the community does not feel the need to engage in the discussion.


Closing Thoughts

Whatever the reaction is at this time, the steps taken by the team are commendable, steps that show the importance of accountability in DeFi. By implementing these compensation measures Value is offering an apology to investors and is trying to build up the confidence of traders/users with the protocol. Time will tell if their efforts are successful, or if the money lost is too big a deterrent for future users.





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Wilfred Victor

Ace finds himself as a blockchain enthusiast who is focused on growing with the entire crypto sector. He is an energetic and passionate writer who believes that all things are achievable.

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