Flash Loan Attack: Origin Protocol Unveils Compensation Plan that Excludes Founders

Flash Loan Attack: Origin Protocol Unveils Compensation Plan that Excludes FoundersThe Origin Protocol team has unveiled a compensation plan for its depositors who were adversely affected by the flash loan attack in November. According to the team, there is now a plan to provide compensation equal to 100% of the value deposited to OUSD at the time of the exploit.

Two Compensation Plans

Still, the team clarifies that one’s OUSD holdings before and after the hack will be a key determinant of the compensation package they will receive. In an update issued via Medium, Micah Alcorn who is the Production Engineer at Origin Protocol says:

Approximately two-thirds of affected users will receive full compensation in the form of newly minted OUSD. The remaining affected users — mostly larger depositors — will receive 25% of their compensation in OUSD upfront and 75% of their compensation in Origin Tokens (OGN) that are locked for one year.

Alcorn adds that in order to compensate these users “for the time value of money and not having all their funds available upfront, locked OGN will earn interest at 25% over the year.” This according to Origin team means for the OGN portion of compensation, “users will receive 1.25x the value in OGN one year after the compensation program goes live.” The compensation process is set to start “in a few weeks.”

Out of Pocket Compensation

Meanwhile, the team is insisting that its compensation plan will not impact negatively on the project’s prospects. Stressing this point, Alcorn says:

While the out-of-pocket portion of this compensation will be a substantial one-time expense for Origin, we remain well-capitalized with plenty of runway to ensure the success of OUSD and our other e-commerce products.

if (!window.GrowJs) { (function () { var s = document.createElement(‘script’); s.async = true; s.type = ‘text/javascript’; s.src = ‘https://bitcoinads.growadvertising.com/adserve/app’; var n = document.getElementsByTagName(“script”)[0]; n.parentNode.insertBefore(s, n); }()); } var GrowJs = GrowJs || {}; GrowJs.ads = GrowJs.ads || []; GrowJs.ads.push({ node: document.currentScript.parentElement, handler: function (node) { var banner = GrowJs.createBanner(node, 31, [300, 250], null, []); GrowJs.showBanner(banner.index); } });

Interestingly, the update says founders will not receive any compensation as a part of this plan despite having lost over $1 million in the hack.

Immediately after the flash-loan attack, Origin Protocol team offered $1 million as a reward to anyone with information that would help to recover the stolen funds. In addition, team Origin pledged to work with exchanges and third parties to freeze and recover the stolen funds. However, at the time of writing, there have been no new updates on this while the stablecoin is still trading at $0.15.

What do you think of Origin’s compensation plan? Share your views in the comments section below.

The post Flash Loan Attack: Origin Protocol Unveils Compensation Plan that Excludes Founders appeared first on Bitcoin News.

Learn more

Be the first to comment

Leave a Reply