It’s been a week since Ankr detected a hack that resulted in excessive minting of our BNB liquid staking token (aBNBc) and its rapid exchange for other tokens on decentralized exchanges. The team was able to briskly patch the exploit within hours and deploy an initial $15m Recovery Fund that has now been exceeded to compensate DeFi BNB liquidity providers, BNB lenders, and DeFi protocol users affected by the aBNBc exploit.
The compensation plan is scheduled to take part across several stages so we can monitor conversions and move quickly to reimburse all legitimate and affected aBNBc & aBNBb token holders based on a snapshot taken December 2, 2022 (Dec-02-2022 at 12:43:18 AM +UTC - Block number: 23545403).
What Has Been Accomplished So Far?
After announcing the Recovery Strategy on the Ankr blog and our official social media channels, we took several measures to start compensating users to the full extent of the losses they incurred as a result of the exploit.
So far, we have been able to complete various Airdrops of ankrBNB and BNB tokens to wallet addresses that held aBNBc and aBNBb at the time of the snapshot through smart contracts and liquidity pools. The team is working closely with several DeFi protocols to ensure the safety and best interest of their communities. We will continue to share further updates as they are released.
As of now, we have met the following milestones in our Recovery Plan:
Re-stabilized HAY Price
On Thursday, December 8th, 2022, Ankr finalized the purchase of 6,843,323 HAY on Decentralized Exchanges out of the entire 17,747,582 HAY of accumulated bad debt. This move succeeded in stabilizing HAY’s price, pushing HAY/BUSD up to $0.98.
Additionally, on Tuesday, December 13th, Ankr burned 6,000,000 HAY, which is the first burn to the Helio Bad Debt Burn Address. Immediately after the incident, the Helio team stated that it would be repurchasing the excess HAY and sending it to a burn address. Helio Protocol had a total value locked of approximately $90 million before the incident of which Helio has already bought back $3 million worth of bad debt in HAY in the open market.
Airdropped ankrBNB to Affected DeFi Users
On Friday, December 9th, 2022, Ankr airdropped ankrBNB to wallet addresses that held aBNBc and aBNBb at the time of snapshot through smart contracts for a number of partner DeFi protocols. We were able to complete the airdrop for the following protocols:
- Ellipsis Finance
- PancakeSwap
- Beefy Finance
- ApeSwap
- ACryptoS
- Wombat
- Wombex
- Magpie
- Quoll
Airdropped BNB to Affected LPs
On Monday, December 12th, 2022, Ankr airdropped BNB to wallet address that held BNB through aBNBc or aBNBb liquidity pools. The liquidity pools we compensated addresses for are:
- ACryptoS ASCI Farm: 18.57922911707609861 BNB
- ACryptoS LP: 0.312655746961921 BNB
- ApeSwap LP: 192.73227886323606338 BNB
- Ellipsis LP Beefy Vault: 829.820502618376604417 BNB
- Ellipsis LP DotDot Farm: 332.017235831474294796 BNB
- Ellipsis LP Farm: 17.327942433773631424 BNB
- Ellipsis LP: 9.987203105242974679 BNB
- Kalmy vault: 52.996829992 BNB
- Izumi LP: 509.783825632276009070 BNB
- PancakeSwap LP Beefy Vault: 697.936888689457446913 BNB
- PancakeSwap Farm: 6,225.408642285559266733 BNB
Airdropped ankrBNB to Missing Addresses
Ankr also airdropped ankrBNB to missing wallet addresses that held aBNBc and aBNBb at the time of the snapshot through smart contracts on the following protocols:
- Izumi
- DotDot Finance
- Kalmy
Unlocked ankrBNB Transfers
After halting trading for aBNBc and aBNBb tokens and completing the token migration to the new ankrBNB, we are unblocking transferability of newly airdropped ankrBNB tokens.
Plan for Reimbursing Wombat stkBNB LPs
We have reached a bilateral agreement with pStake to airdrop 2,654.352 ankrBNB and 681.051 stkBNB, which will partially cover the loss of stkBNB liquidity providers on Wombat. The nature of the mixed liquidity pools on the decentralized exchange poses a challenge in estimating the losses of affected users but Ankr is happy to have reached a decision with the management team of Wombat for adequate compensation.
100% coverage for Wombat BNB LPs
Ankr will provide 100% coverage of the BNB Wombat LP estimated at **14,407.155 BNB (before Christmas at the latest).
More Updates To Come
We want to thank the community for your ongoing support and feedback during this time!
The team has decided to further assess any potential corner cases that the Recovery Program did not initially take into account on a case-by-case basis. The main criteria will be protecting users that displayed non-malicious behavior at or after the time of the exploit. Malicious arbitrageurs that took advantage of the aBNBc exploit will not be included in the Recovery Program
The Ankr team is working 24/7 to compensate users to the full extent of the losses they incurred as a result of the exploit and we will post updates as airdrops continue.
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