Token price DeFi-protocol Cream Finance collapsed by more than 35% after the announcement by the developers of the program of reimbursement of funds to users affected by the October hacker attack.
More than 1.45 million CREAM will be distributed among the victims. For this, the assets of the treasury of the project are used, as well as tokens allocated to the developers. The latter will no longer receive allocations.
We will distribute 1,453,415 CREAM tokens to impacted users. We are utilizing remaining CREAM tokens within the treasury, and removing the project team’s remaining CREAM token allocation. There will be no further CREAM allocations to the team.
— Cream Finance 🍦 (@CreamdotFinance) November 13, 2021
Users who succeed in obtaining reimbursement through the insurance projects Nexus Mutual and Bridge Mutual do not participate in the program. Cream Finance noted that staking participants will continue to receive rewards – this also applies to long-term CREAM pools.
The project team will focus on developing the Iron Bank protocol (the second version of Cream Finance). The developers “tightened up their token listing strategy” and set collateral limits for all markets, and started implementing “additional monitoring and alerting solutions.”
At the time of writing, CREAM is trading near $ 49 – on November 13, the price exceeded $ 86. Before the attack, the asset was worth more than $ 155.
The decline in the price of the token is associated with an increase in its supply – assets previously held by the project treasury and developers will enter the market. According to CoinGecko, there are 766,534 CREAMs in public circulation, but now their number will increase significantly.
In 2021, Cream Finance was hacked three times. In February, an unknown attacker exploited a vulnerability in Iron Bank and withdrawn tokens totaling $ 37.5 million.
In August, the project came under attack with instant credit. The damage amounted to 462,079,976 AMP and 2804 ETH (more than $ 18 million).
On September 8, the attacker transferred most of the stolen amount in the amount of 5,152.6 ETH to the project’s multisig wallet.
In October, the protocol developers confirmed that they managed to get back 5152.6 ETH. The hacker was allowed to keep 10% of the stolen funds – approximately 515 ETH as a reward for the error he discovered.
In the same month, an unknown person withdrew $ 130 million from Crean Finance. To do this, he used an instant loan as part of a complex transaction.
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