DeFi blockchain protocol Balancer Labs that it will fully reimburse all the liquidity providers who lost their funds as a result of the cyberattack on the block a couple of days back. As per a tweet, Balancer Labs will also pay the highest bounty available to Hex Capital, who pointed out the bug to their team.
After thorough discussions with the community, the Balancer Labs team decided that it will fully reimburse all the liquidity providers who lost funds in the attack of yesterday. We will also pay out the highest bug bounty available for @Hex_Capital
More details on the…
— Balancer Labs (@BalancerLabs) June 29, 2020
The attack was first noticed on Sunday, after which Balancer Labs published a detailed account of the incident on Medium. They said,
In a separate blog on Medium yesterday, Balancer Labs said that though they will fully reimburse the liquidity providers, it will only be for this particular attack. This, they added, isn’t setting a precedent for a future loss that might occur on the Balancer block. There is a certain level of risk involved in using DeFi applications and users must be aware of it, they further added.
Cyber attacks of crypto are quite common, and users have lost billions of dollars to hackers. However, the stand taken by Balancer Labs is praiseworthy, as very few companies take up to themselves to reimburse their users, even for the first time. Commending the efforts taken by the DeFi protocol, Philip Arthur Moore, popular developer and research head of Frontier Wallet said that the steps Balancer Labs has taken show how such incidents must be handled. In his tweet, Moore praised Balancer Labs and its CEO, Fernando Martinelli, for being honest about their shortcomings.
This is how it should have been handled.
Less dunking on people who make mistakes, more encouraging positive outcomes for everyone. It’s the only way forward. https://t.co/NWg509vqXY
— Philip Arthur Moore 🇻🇳🐷 (@cryptophilip) June 30, 2020