Popsicle Finance proposes NFT-based compensation for hack losses

The DeFi protocol Popsicle Finance has outlined details of a recent hack and plans to compensate users for their losses.

Attention #Isvikingers!📣🥤

We have some updates on our recovery plan including UniV3 LP relaunch 🍓, the Loan parameters and the Spirit&Berserkers NFTs!⚔️

Have a read at them in our latest medium article here📖:https://t.co/P6Fj5IkCA5

— Popsicle Finance (@PopsicleFinance) August 11, 2021

According to the project, 439 addresses were affected by the hack, 146 of which were actively used across more than one liquidity pool. 62% of the addresses lost less than $10,000, according to Popsicle Finance.

The developers fixed the bug in the Sorbetto Fragola product that led to the hack and introduced additional security measures.

The project representatives also arranged a loan from another DeFi protocol, Cream. It is reported that the latter is ready to lend $1 million to get things started. The collateral consists of 2 million ICE tokens from the DAO. At the time of writing, the ICE price is $1.28.

Additionally, Popsicle Finance is working on the idea of launching NFTs for compensation. The proposal would grant liquidity providers who lost funds in the hack special Spirit tokens. They would provide the ability not to pay fees up to $3,000. A second type of token, Berserker, is offered to be sold to raise funds for compensation.

As reported by the project, the hacker withdrew more than $20 million from Popsicle Finance. The protocol team offered the attacker $1 million in any currency.

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