PRESS RELEASE
Published on September 14, 2023
Metis will distribute 117,000 METIS tokens to users affected by last month’s exploit, while also implementing Layer Zero’s OFT architecture for METIS tokens on other chains.
TORONTO, ON / ACCESSWIRE / September 14, 2023 / Today Metis announced a two-part plan to support community members affected by the July 1 hack of third-party bridge PolyNetwork. Metis is providing 117,000 METIS from the protocol’s own liquidity to compensate affected users.
background
On July 1, a malicious actor managed to mint and withdraw all available liquidity on PolyNetwork. The hacker minted 8,882,912 METIS on the BNB chain using the bridge’s Mint and Burn functionality. Metis reacted quickly and withdrew all liquidity from PancakeSwap and Stargate as a temporary security measure. Additionally, Netswap was deprived of liquidity and the PolyNetwork bridge was closed, leaving little to no liquidity for both tokens, resulting in the hacker only being able to steal 117,000 METIS tokens from users’ funds.
Fortunately, since there was no way out of the BNB chain for the rest of the newly minted METIS tokens and no significant METIS liquidity, the exploit had no impact on the overall supply or circulating supply of METIS on the Ethereum or Metis networks . This means that users on neither network were directly affected. However, users holding METIS tokens on BNBChain were affected as there was no liquidity available for swapping and no active liquidity pools following the exploit. To account for unaffected users and provide a balanced distribution model, retribution will be provided in the form of vested tokens.
Compensation plan
Metis will issue 117,000 rMETIS tokens upon request to responsibly compensate affected users. The rMETIS token is a receipt token backed 1:1 by 117,000 METIS tokens allocated by the MetisDAO Foundation.
On the first day of implementation of the vesting contract, set for September 14, 2023, 1 rMetis token will be equivalent to 0.5 METIS and will gradually scale to full 1:1 parity after September 14, 2024. Users who claim their rMetis tokens can redeem an equivalent amount of METIS at any time in proportion to the time of redemption.
Community members whose funds were affected by the exploit have until October 14, 2024 to claim their share of rMetis tokens.
OFTEN METIS tokens
Previously, users interacting with the METIS token on chains other than Metis and Ethereum Mainnet interacted with packaged versions of METIS that were not based on the same security assumptions as native METIS.
To provide METIS holders on other blockchains with a safer alternative, Metis has updated its cross-chain token structure to the innovative OFT model developed by LayerZero.
Users can own real METIS on the other chains where OFT launched (initially Metis, BNB and Avalanche). Users who supply USDT to the “USDT by Metis” pool on BNB will receive real Metis rewards, not a packaged bridge version. Among other opportunities for holders, this will enable the integration of real and native Metis into cross-chain applications; Seamless bridging with no LP requirements. DEXes that will trade Metis on each participating chain include Hermes, Unimaia, Hummus, Netswap and Hera.
About Metis
Metis is an EVM equivalent Ethereum Layer 2 protocol focused on bridging the gap between Web2 and Web3. Metis provides users with a secure, decentralized and scalable, easy-to-use network. By combining a robust Layer 2 with on-chain credentials and Decentralized Autonomous Enterprises (DACs), Metis is building the perfect ecosystem for open and trustless collaboration secured by Ethereum.
CONTACT:
Colin Landers
[email protected]
SOURCE: Métis
View source version on accesswire.com:
https://www.accesswire.com/783423/metis-provides-retribution-for-users-affected-by-polynetwork-bridge-exploit
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