Cryptocurrency protocols are teaming up to rescue approximately $300,000 worth of crypto from the biggest hack of 2023, which affected Inverse Finance. Balancer, an automated market maker, has proposed a plan called “permissioned arbitrage” that would see its “bb-e-USD” pool unfreeze on June 8. An approval from Balancer’s community members is still need in order to implement the plan. Other protocols including TempleDAO, Euler Finance and Inverse Finance are in agreement with the plan.

The Balancer situation highlights how cryptocurrency protocols can work together to tackle complex challenges. TempleDAO would provide loans of speciality stablecoins needed to execute the arbitrage while Euler Finance would conduct a patch for the smart contract. Once the assets are recovered, a second vote will take place to distribute the recovered tokens.

The process of reclaiming the hacked assets is of particular importance to Inverse Finance, who have expressed their distress over the situation. Tritium, a pseudonymous Balancer contributor, commented, “Inverse is clearly very concerned about recovering their coins”. Should the plan be successful, it will ensure that customers of Inverse Finance are able to reclaim their funds.

Despite being a complex process, cryptocurrency work collaboratively to facilitate the recovery of assets during a crisis. The situation at Balancer offers a prime example of how multiple protocols can work together to ensure that the user experience remains safe. Each protocol brings their expertise to the table, from providing assets to patching contracts, to ensure that assets can be recovered in a timely and secure manner.



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