Afterwards a devastating hack, a cross-chain decentralized finance (DeFi) protocol has revealed today a temporary compensation plan for token holders and investors impacted by one of the largest exploits in DeFi history.

In a Tweet today, EasyFi announced their "Interim Compensation Plan," a multi-stage procedure that includes immediate payments, IOU tokens, and incentive programs aimed at victims of the attack.

The hack, which took place nineteen April, is considered to exist amongst the largest in DeFi history, with $half dozen meg in stablecoins and ii.98 million EZ tokens worth upward of $120 million lost at the fourth dimension of the assail. The hacker was in a complicated position, notwithstanding, as later on exploiting the protocol they owned upwards of 30% of the supply of EZ tokens and in that location was limited liquidity with which to unload them. The token "hardforked" to EZ 2.0 a week later, rendering the assailant's remaining tokens effectively worthless.

In a Tweet from his personal account, EasyFi founder Ankitt Gaur confirmed that the hack was the result of a "targeted attack on the founder's car/metamask to access admin keys and execute the well-planned hack." This attack vector bears similarities to a 2020 hack on the personal computer of Hugh Karp, the founder of Nexus Mutual, who lost $eight one thousand thousand.

An expert from hack and exploit publication Rekt noted that the theft may have been the effect of lax security practices, in that a unmarried individual was in possession of the keys to the treasury, equally opposed to existence secured in a wallet with precautions against this blazon of hack such as a multisignature scheme or timelocked transactions.

In their compensation plan blog mail, EasyFi characterizes the attack as "well-planned" and "sophisticated."

Regardless of the cause, the efforts to compensate victims is multifaceted. Per their post, 25% of lost funds volition be distributed to users "immediately" in the grade of stablecoins, while the remaining 75% volition be distributed as "IOU" tokens. The IOU tokens will have "25% discount on spot price of EZ at the time of distribution," and exist redeemable for EZ v2 tokens on a one-to-1 basis. Hack victims volition as well reportedly be the recipients of future airdrops from unspecified partners and have access to other incentivized programs still in development.

The post besides noted that the protocol has worked to attract new venture capital via an "accelerated" fundraising round following the hack — a round that is even so ongoing.

The token is downward 4.7% today to $11.30, and downwardly 33.8% on the calendar week — even so reeling from both the hack, equally well as from compensated investors possibly cashing in their IOUs.

Compensation methods are an increasingly hot topic as hacks and exploits continue to plague DeFi. EasyFi's multifaceted approach mirrors that of Origin Dollar's, while other protocols take opted for creative cross-platform treasury magic to mitigate attacks in recent months.