The decentralized tool for combining financial transactions, Furucombo, will compensate victims of a recent “bad contract” exploit that cost the protocol $ 15 million in stolen funds.
Following an internal call with affected users last week, Furucombo released a compensation plan on Tuesday announcing that they would issue 5 million iouCOMBO tokens to victims of the violation. IouCOMBO tokens are issued in the form of ERC-20 tokens and represent the rights to claim the COMBO tokens from Furucombo in the recovery pool.
From a total of 100 million COMBO tokens, 5 million coins were allocated to the recovery pool and are subject to a linear blocking period of 360 days from March 1st. According to an announcement, Furucombo expects the recovery pools to be created and distributed in April after the audits are complete.
Source: Furucombo
Holders of COMBO tokens receive an incentive to share the fees charged on Furucombo and to participate in the company’s management. At the time of publication, the COMBO token is trading at $ 2.85, down 3.4% over the past 24 hours. On the day of the hack, the token was trading at $ 5.22, according to CoinMarketCap.
As previously reported, Furucombo suffered a contract exploit on February 27th. The attacker used a forged contract to mislead the protocol that his contract was a new version of Aave. In an official autopsy on March 1, Furucombo announced that the breach affected 22 users, resulting in a loss of $ 15 million in 21 different assets. The stolen assets included key DeFi coins like Bao Finance (BAO), COMBO, Curve DAO (CRV), as well as popular stablecoins like Tether (USDT) and USD Coin (USDC), Furucombo told Cointelegraph.
Furucombo lost another $ 1.74 million in working capital during the exploit. “We have decided to keep the remaining funds to keep project and office operations going and to ensure we can continue our commitment to the COMBO community,” the team wrote.
Furucombo has reported the issue to law enforcement agencies and has started working with smart contract analysis service Certora to get a full investigation into the incident.
