After the hacker returned the majority of the funds, Euler Finance is reportedly ready to compensate exploit victims.
Euler Finance, an Ethereum-based noncustodial lending protocol, has announced plans to launch a compensation process for victims affected by a $197 million hack.
The news comes shortly after most of the assets stolen in the flash loan exploit were returned by the hacker. In total, the hacker returned 95,556 Ether (ETH) and 43 million Dai (DAI).
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Last month, Euler Finance was forced to disable its protocol following the massive flash loan exploit.
Now the company has revealed its intention to repay all sub-account liabilities from the time the protocol was disabled. To determine the Ether (ETH) value of assets and liabilities, Euler Finance will employ the on-chain price oracle provided by either Uniswap or Chainlink.
Markets that have bad debt in excess of reserves (a few long-tail markets that suffered oracle attacks) will have the bad debt proportionally distributed amongst depositors in the market.
To streamline the redemption process, Euler Finance has rolled out a smart contract with funds for all exploited addresses, which also includes an embedded Merkle tree.
In order to receive redemption, users must pass the Merkle proof of validity and “an acceptance token that is individually computed for each account and confirms that the account holder agrees with the terms and conditions.”
Before returning the funds, Euler Finance hackers went on a spree and sent stolen funds to sanctioned crypto mixer Tornado Cash. Afterward, the malicious actor moved a part of the stolen funds to an address linked to North Korean hackers.
