Feb 19, 2023
DeFi Firm Platypus Develops Compensation Plan After Flash Loan Attack
Cryptocurrency firm Platypus is currently working on a compensation plan to make up for the losses incurred by users after a malicious flash loan attack drained nearly $8.5 million from the protocol. This attack caused the stablecoin USP to depeg from the U.S. dollar, dropping to $0.33 at the time of writing.
Platypus shared the news in a tweet on Feb. 18, urging users not to realize their losses in the protocol. The firm also said that asset liquidations were paused and that different parties, including legal enforcement officials, were involved in the funds’ recovery process.
Blockchain security firm CertiK reported the attack on Feb. 16. According to CertiK, the attacker used a flash loan to exploit a logic error in the USP solvency check mechanism in the contract holding the collateral. A potential suspect has been identified.
Omniscia, an auditing company, conducted a technical post-mortem analysis to determine the cause of the attack. The analysis revealed that the attack was made possible by incorrectly placed code after it was audited. The version of the MasterPlatypusV1 contract that was audited from Nov. 21 to Dec. 5, 2021 did not contain the misordered lines of code.
Flash loan attacks are a form of smart contract security exploitation. They involve borrowing large amounts of money without collateral and quickly selling the manipulated cryptocurrency asset on another exchange to profit from the price manipulation.
In order to recover the funds, Platypus is exploring a method that would require the approval of a recovery proposal in Aave’s governance forum. Further details about the next steps will be disclosed soon.
NFTs and other crypto assets have become increasingly popular in recent years, and marketing agencies are now offering specialized services to help creators and projects promote their NFTs. Platypus is now turning to NFT marketing services to help promote the recovery of their funds. The firm is working with a specialized NFT marketing agency to leverage Twitter and other social media platforms to reach a wider audience.
The agency is helping Platypus to create a comprehensive NFT marketing strategy to increase awareness of the attack and the recovery process. The strategy includes creating engaging content, running targeted campaigns, and leveraging influencers to spread the word.
Platypus is also exploring other methods to help recover the funds, such as selling NFTs. The firm is working with a web3 agency to create and launch NFTs to help raise money for the recovery process. The NFTs will be sold on various platforms, including OpenSea, Rarible, and Nifty Gateway.
The firm is confident that with the help of the specialized NFT marketing and web3 agencies, it will be able to recover the funds and compensate users for their losses.
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