zkLend Allocates $400,000 for Compensation Plan Following Hack

The team behind the L2 protocol zkLend, built on Starknet, has released a report on the hack and introduced a compensation plan aimed at returning the maximum portion of lost deposits to affected users.

The incident impacted four liquidity pools:

• ETH: 7.06%;
• USDC: 4.08%;
• USDT: 23.57%;
• STRK: 30.65%.

Compensation will be distributed based on the status of the pool: affected users will receive either a full refund or partial compensation.

To cover the losses, the zkLend team will allocate $400,000. The plan includes covering part of the deficit by redistributing surpluses from unaffected pools. The total amount of uncompensated damage after internal contributions from the team is approximately $9 million.

For each user, the net deposit value (NDV) was calculated: the sum of assets minus borrowed funds. Based on this, each user’s share in tokens has been adjusted.

For example, if a participant deposited 1 ETH and 1000 USDC and borrowed 300 USDT (with prices at the time of the attack: 1 ETH = $2000), the NDV would be $2700. This value will be used for proportional redistribution of asset shares.

zkLend will also issue approximately 82,818 Recovery NFTs, which will serve as long-term financial guarantees for those affected. These tokens secure the right to claim the remaining funds, which will be restored through the project’s future revenues, as well as in the event of the return of stolen assets.

The team is preparing a recovery portal, which will be operational within the next two weeks. Users will be able to see the size of compensations and the steps to take. Direct payments will commence immediately after the contract audits, which will take about two weeks.

Back in February, hackers attacked the wallets of users on the L2 platform Abstract, based on Ethereum. Later, the project’s developer reported that a vulnerability in the blockchain game application Cardex led to the theft of ETH worth $400,000 from 9,000 addresses.