Crypto Trading Platform Cypher Lays Out Recovery Plan after Losing $1M to Exploit
The protocol will attempt to “socialize” all losses across its platform.
Cypher, the Solana-based trading platform, has announced how it intends to recover from its $1 million exploit. In a recent publication, the firm noted that its plan will take place over four stages.
Firstly, the protocol will attempt to “socialize” all losses across its platform. That is, it will distribute, fairly, all losses across its community.
Per the publication, the first stage of the plan will also involve Cypher creating a “pro rata redemption package” of current assets it possesses. Users will then be able to carry out effective withdrawals through a dedicated web interface. The firm wrote partly:
“Our foremost priority is to direct funds towards impacted users, underscoring our dedication to rectify their financial losses.”
In the second stage of the recovery plan, Cypher will place a laser focus on audits and open-source initiatives. That is after restitution to affected users must have been completed. By doing so, the protocol will seek to reinforce its security and transparency.
To this end, Cypher will raise funds through an initial DEX offering (IDO) that will be used to pay for audits and further upgrades. So, for one, auditing reaffirms Cypher’s commitment to being trustworthy. Whereas, by fully open-sourcing its protocol’s code, it will also enhance its functionality through community participation.
Cypher insists that the smart contract will remain in its current frozen state until audits and open sourcing are completed. And, “after a meticulous evaluation, ensuring every potential vulnerability is addressed,” the protocol may then resume.
In the third stage, the protocol will seek to enlarge its insurance fund size. And, according to the firm, this is just to minimize risk and safeguard its users’ interests. While the last phase will involve setting up a treasury. This is aimed at sustaining protocol growth and that of the ecosystem at large.
Cause of Cypher Exploit Still Undetermined
Interestingly, security researchers are yet to find the cause of the August 8 $1 million Cypher exploit. However, of the total amount drained in the exploit, various centralized exchanges were quick to move in, freezing nearly $600,000 worth of crypto. While that was enough to prevent the attacker from cashing in some of the funds, Cypher assures its users that it will leave no stone unturned in its quest to recover the funds for users. It hopes to achieve this by collaborating with exchanges and other law enforcement agencies.
next
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this.
He’s a reader, a researcher, an astute speaker, and also a budding entrepreneur.
Away from crypto however, Mayowa’s fancied distractions include soccer or discussing world politics.
