Just last Friday on December 11, 2020, Origin Finance made an announcement that has come as a breeze of happiness for particular users. The users mentioned by Origin Finance in the announcement are the ones who were the victims of a November exploit.
The firm has announced that it has a plan in place to compensate its users who were affected by the exploit in November. Origin Finance is a prominent entity in the decentralized financing (DeFi) stablecoin space.
It was an exploit run by the imposters and scammers in the DeFi space that lured innocent users into investing a sum of seven million dollars. It was back on the 17th of November when Origin Dollar dropped sad and alarming news on its yield-bearing stablecoin users.
The firm announced that its project had fallen prey to a flash loan attack that resulted in $7 Million worth of funds being exploited from the platform.
It is not the only scam that has taken place in decentralized finance (DeFi) this year. There have been numerous occurrences of a similar sort. But there was not much that the DeFi platforms were able to or intended to do for their affected users. However, the team at Origin Dollar is determined to compensate its users who became victims of such attacks.
The firm has assured its users that its focus is to compensate its users for the full amounts instead of a small percentage.
There are many economic experts and analysts interested in the crypto-finance industry that have shared the same observation around DeFi. As per them, the main reason why the DeFi industry is facing so many hiccups, scams, and attacks is due to its nature.
As the name suggests, DeFi is a decentralized platform, which means that it will always have the tendency of being high-risk. Due to this very nature, it will be hard for the regulatory authorities to impose regulations on this platform. Thus, the platform will continue to face such problems and will remain deprived of mainstream adoption until it becomes compliant with regulations.
In his recent post on December 11, 2020, the product manager at Origin Dollar laid out the entire plan of compensating the affected users. The product manager ‘Micah Alcorn’ stated that they are plan to return the affected users 75% of their lost funds in one go. He also shared that the plan will be multi-tiered that the users will be able to choose from.
He stated that the funds they receive will be audited and protected by Origin Finance with new security measures in place. The product managed confirmed that even the larger depositors will be compensated in full with the amount that they lost during the exploit.