According to Cointelegraph: In light of a recent security vulnerability, the decentralized autonomous organization (DAO) behind ParaSwap, the decentralized finance (DeFi) aggregator, has committed to compensating the affected users through its treasury resources.
On April 4, the ParaSwap DAO put forth the idea of using its treasury funds to reimburse the victims of a security flaw in the AugustusV6 contract. A voting process saw overwhelming agreement from 96.81% of ParaSwap DAO's participants in favor of the proposed compensation method.
The AugustusV6 contract, which was momentarily active on March 18, had a critical vulnerability that hackers exploited to drain funds from users who authorized the upgrade. Despite a swift retractment of the contract, which averted a potential $3.4 million loss, approximately $864,000 in assets were drained in the process.
Following this security issue, ParaSwap worked in conjunction with blockchain analytics and security firms Chainalysis and TRM Labs to trace the hacker addresses and monitor the fund movement. The ParaSwap Foundation has pledged to cover the associated costs resulting from the vulnerability, including refunds, re-audits of contracts, communication with authorities, and the execution of the refund process.
On April 4, about $500,000 worth of assets were reported as recovered. ParaSwap stated that offering full refunds to impacted users is instrumental for the project's long-term sustainability.
According to data from blockchain security firm PeckShield, almost $100 million in digital assets were retrieved after the hacks in March. As a result, 52.8% of funds that were stolen in these incidents were successfully returned.
