• Sat. Mar 2nd, 2024

Rari Capital Makes a Move to Compensate Victims of the Hack

May 8, 2021

As per the recent reports, Rari Capital has made a promising announcement for the victims of the recent Rari Capital. The Rari Capital recently fell victim to a cyberattack, where the hackers were able to exploit the protocol. As the hackers were successful in exploiting the protocol, they were able to steal away $10 million from the Rari Capital.

Following the hack and the exploit, Rari Capital has announced it is in the process of coming up with a plan. The plan would see the victims of the exploit compensated for the funds they ended up losing.

The teams investigating the exploit at the Rari Capital have also shared their report on the preliminary investigations on the exploit. The incident report published by the Rari Capital shows that during the exploit, it ended up losing 2,600 ETH.

The firm revealed that the 2,600 ETH are equal to the funds of 60% of the users who are part of the Ethereum Pool at the Rai Capital. Rari Capital rebalances the pools and funds of the users by automating the yield farming process.

However, following the exploit, Jai Bhavnani, founder of Rari, post a statement on Monday, May 10, 2021. In the statement, Bhavnani mentioned that all contributors of the protocol have a held vote. The voting is unanimous, which it is favored to return the slated RGT tokens for developer incentives.

As an outcome of the voting, the RGT tokens, which are 2 million at the moment, must be returned to the decentralized autonomous organization of the project. If not the RGT tokens, then the victims affected by the exploit must be compensated by DAO.

The plan for the compensation of the victims of the Rari Capital is still underway. The executives at Rari Capital are still going through all possible solutions to come up with a suitable plan. Rari Capital’s focus is to come up with a plan that is most effective and does not leave anyone under-compensated or overcompensated.

Bhavnani stated that they would be having a call among the community members and the developers. Bhavnani noted in the post he made that the holders of the rRGT tokens will be able to claim a share of the stablecoin reserves for DAO. He noted that the users would be able to do it on May 10, during the community call.

For clarity, Bhavnani informed the entire Rari Capital community about the RGT tokens that DAO currently has reserved. He stated that at the moment, they have 8.7 million RGT tokens, which translates to $121.8 million, which is equal to a 1% supply of RGT.

According to the cryptocurrency market, RGT currently has a market price of $13.36. The RGT that the Rari Capital management has allocated for compensation translate to around $26.7 million.

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