The DEI stablecoin token recently experienced a major hack that led to a $1 loss and the token dropping its peg at $0.30. The cause of the attack was the discovery of a fundamental technical issue in the token contract, which subsequently caused a reduction in the protocol's DEUS token by more than 30%. Aforementioned recent history of the DEI protocol includes two flash loan attacks in May of last year, incurring a net loss of more than $30 million.
In order to evaluate balances and take subsequent action, DEUS will take a snapshot of all DEI balances before tokens are burned. Subsequently, a comprehensive redemption and recovery plan will be formulated. Assessing the users that encountered difficulty in arbitrage after the hack, there may be leeway for them to reverse their trades.
Moreover, the multi-signature control of the BSC chain is maintained by the DEUS team and anyone willing to return the stolen funds will be spared of legal implications, receiving a bug bounty of 20% of the funds. Funds repatriated will be publicly verified and deemed as a “white hat rescue”. Nevertheless, DEUS recommends users to not interact with DEI contracts until a specified redemptive plan is in place.
Mary King
- 2023-05-07
DEI Protocol Stablecoin Token Experiences Major Hack
An overview of how the DEI stablecoin token recently experienced a major hack, leading to a net loss of more than $30 million. Read to understand how to assess balances and the subsequent action taken.
