Metis provides support for users affected by PolyNetwork exploit while improving the cross-chain structure

Layer 2 scaling solution Metis has announced a plan to compensate users affected by last month’s PolyNetwork bridge hack.

The project will distribute 117,000 METIS tokens to affected community members. At the same time, Metis is implementing an improved cross-chain architecture using LayerZero’s OFT model.

Summary of the PolyNetwork exploit

On July 1, a hacker exploited the PolyNetwork bridge to mint and drain liquidity pools of 8.8 million METIS tokens on the Binance Smart Chain. Metis quickly responded by withdrawing liquidity from PancakeSwap, Stargate and other DEXes to limit the damage. As a result, the hacker was only able to steal 117,000 METIS from users.

The exploit had no impact on the total or circulating supply of METIS on Ethereum or Metis. However, BSC users were affected due to the lack of liquidity for exchange or trading activities following the hack. To make these users whole, Metis will distribute 117,000 newly created rMETIS tokens.

Compensation via the vested token model

The rMETIS tokens represent a receipt for the 117,000 METIS provided as compensation. The rMETIS will propagate over time, starting with a ratio of 1:0.5 to METIS on September 14, 2023. The ratio will gradually increase until it reaches full parity of 1:1 after September 14, 2024.

Affected users can claim rMETIS until October 14, 2024 and redeem the METIS amount at any time according to the vesting schedule. This model balances compensation for unaffected users and recovery for affected community members.

The OFT structure offers an excellent cross-chain experience

Previously, METIS tokens on networks other than Ethereum and Metis were packaged versions with lower security assumptions. To improve the cross-chain experience, Metis has upgraded to LayerZero’s OFT architecture.

OFT enables real METIS tokens on BNB Chain, Avalanche and other chains. Users can earn native METIS rewards by, for example, deploying assets to “USDT by Metis” pools on the BNB chain. This also allows for seamless bridging of Metis with no liquidity pool requirements.

The first DEXes to offer trading of native Metis OFT tokens include Hermes, Unimaia, Hummus, Netswap and Hera. Overall, the OFT structure enables superior cross-chain usability for the Metis ecosystem.

Metis is taking measures to support users and improve decentralized ecosystems

Metis has taken decisive measures to support users affected by the PolyNetwork exploit while improving the cross-chain functionality of its ecosystem. The vesting token model provides responsible compensation to affected community members.

At the same time, the transition to LayerZero’s OFT architecture enables a superior experience for METIS holders across multiple blockchains. With these efforts, Metis continues to work towards its goal of connecting Web2 and Web3 and enabling the next generation of decentralized applications.

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers