Layer 2 scaling answer Metis has announced a plan to compensate customers affected by final month’s PolyNetwork bridge hack.
The mission will distribute 117,000 METIS tokens to impacted neighborhood members. On the similar time, Metis is implementing an enhanced cross-chain structure utilizing LayerZero’s OFT mannequin.
Recapping The PolyNetwork Exploit
On July 1st, a hacker exploited the PolyNetwork bridge to mint and drain liquidity swimming pools of 8.8 million METIS tokens on Binance Sensible Chain. Metis responded rapidly by eradicating liquidity from PancakeSwap, Stargate, and different DEXes to restrict the harm. This left the hacker solely in a position to steal 117,000 METIS from customers.
The exploit didn’t influence the entire or circulating provide of METIS on Ethereum or Metis. Nevertheless, BSC customers have been affected as a result of lack of liquidity for swapping or buying and selling after the hack. To make these customers entire, Metis will distribute 117,000 newly created rMETIS tokens.
Compensation Through Vested Token Mannequin
The rMETIS tokens characterize a receipt for the 117,000 METIS allotted for compensation. The rMETIS will vest over time, beginning at a 1:0.5 ratio to METIS on September 14th, 2023. The ratio will step by step improve till full 1:1 parity after September 14th, 2024.
Affected customers can declare rMETIS till October 14th, 2024 and redeem at any level for the METIS quantity relative to the vesting schedule. This mannequin balances compensation for unaffected customers and restoration for affected neighborhood members.
OFT Construction Gives Superior Cross-Chain Expertise
Beforehand, METIS tokens on networks apart from Ethereum and Metis have been wrapped variations with inferior safety assumptions. To enhance the cross-chain expertise, Metis has upgraded to LayerZero’s OFT structure.
OFT permits actual METIS tokens on BNB Chain, Avalanche, and different chains. Customers can earn native METIS rewards by supplying property to “USDT by Metis” swimming pools on BNB Chain for instance. This additionally permits seamless Metis bridging with out liquidity pool necessities.
The preliminary DEXes to supply buying and selling in native Metis OFT tokens embrace Hermes, Unimaia, Hummus, Netswap, and Hera. General, the OFT construction unlocks superior cross-chain operability for the Metis ecosystem.
Metis Takes Motion To Help Customers And Enhance Decentralized Ecosystems
Metis has taken decisive motion to help customers affected by the PolyNetwork exploit whereas additionally enhancing the cross-chain operability of its ecosystem. The vesting token mannequin gives accountable compensation to impacted neighborhood members.
On the similar time, the transition to LayerZero’s OFT structure permits a superior expertise for METIS holders throughout a number of blockchains. With these efforts, Metis continues working in the direction of its objective of bridging Web2 and Web3 and enabling the following era of decentralized functions.