DeFi protocol Warp Finance says it has recovered 75% of stolen funds, about $5.85 million
Decentralized finance (DeFi) lending protocol Warp Finance, which lost $7.7 million last week in a flash loan attack, has recovered 75% of the funds or about $5.85 million.
Announcing the update on Sunday, Warp said it regained the funds in the form of ETH/DAI LP tokens, i.e., Uniswap liquidity provider tokens consisting of ether and DAI deposits. The funds, however, were lost in DAI and USDC stablecoins.
“The reason we have chosen to return LP tokens instead of stablecoins is that these are the tokens we’ve been able to recover,” said Warp. It did not explain how, specifically, the funds were recouped. Last week, Warp did say approximately $5.5 million are “still secured in the collateral vault.” The Block has reached out to Warp to learn more about the recovery and will update this story should we hear back.
As for reimbursement of the recovered funds, Warp said it will distribute the amount to affected users within 24 hours, in proportion to the amount of wUSDC and wDAI held at the time of the attack.
Warp said it will also issue “Portal IOU [‘i owe you’] tokens” to affected users to make them whole, details of which will be shared “in the coming days.”
© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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Author: Yogita Khatri
