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Hacked DeFi Platform: Options Firm will reimburse the clients in full

Options issuance platform Opyn said that they would compensate their clients of a hack that happened just recently.

“We will be reimbursing ETH put sellers in full who were affected by the vulnerability,” Opyn said this morning (UTC). They continued that further particulars on the reimbursement method would be prepared in the next three days.

Opyn also published today a summary of the hack, stating that it touched only the Opyn ethereum (ETH) put contracts. This exploit allowed the hacker(s) to “double exercise” oTokens, seizing the insurance posted by some sellers.

USD Coin (USDC) 371,260 was determined to be stolen at the time of the statement. A white hat hack obtained further USDC 572,165 from prominent vaults by the Opyn team.

To lessen the further loss, said the team, they withdrew liquidity from their ETH Put pools on the Uniswap platform and eliminated the ability to buy ETH Puts on the opyn.co website. Furthermore, “to ensure liquidity for existing token holders, we also offered and continue to offer to purchase all ETH Put oTokens that were outstanding at the time of the exploit for 20% above market price on Deribit.”

The Cryptoverse appears to no longer be startled by the attacks in the decentralized finance (DeFi) space. Some write how learning smart contract exploits are “more profitable than trading,” some argue that insurance coverage is the way to go, and others are warning that “Some bad stuff will probably happen over the next few years.”

“If you’re truly risk-averse, you should avoid using DeFi altogether,” said Management consultant and Ethereum investor ‘DCinvestor.eth’. “But if you want to be a pioneer in decentralizing finance, do your research, manage your risk, and good luck out there.”

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