Origin Protocol Launches Compensation for Victims of $7 Million Exploit

An Important Step Towards Trust

Origin Protocol is taking a proactive approach to rectify the fallout from a significant $7 million exploit that impacted over 700 users back in November 2020. In a blog post dated January 20, the project reaffirmed its commitment to compensating victims of the flash loan attack, which targeted the protocol’s native stablecoin, Origin Dollar (OUSD).

How Will the Compensation Work?

The team has outlined specific measures so that affected users can begin to claim their due compensation. Those who lost more than 1,000 OUSD now have the chance to execute a second transaction for the opportunity to claim and stake OGN, the governance token of Origin Protocol.

• Users staking OGN will have their investments locked for 365 days.
• The staking rewards will be an enticing 25% in additional OGN.

This dual approach not only aims to recompense victims but also encourages long-term commitment to the platform. As co-founder Josh Fraser indicated, it’s all about restoring faith and trust among the community of users.

Enhancing Security Measures

In light of the past exploit, Origin Protocol has taken measures to overhaul its entire engineering and product development process. The team is fully aware that past incidents can shake investor confidence and is dedicated to making OUSD a safe harbor for DeFi enthusiasts.

Key security initiatives include:

• Completed multiple audits of Origin’s smart contracts.
• Implementation of additional security features to limit vulnerabilities.
• Future optional insurance coverage for yield farming participants.

Fraser confirmed that the ultimate goal is to transform OUSD into the safest and most reliable option in the DeFi landscape, ensuring users can earn competitive yields without the fear of exploitation.

What’s Next for Claimants?

As compensation efforts roll out, the clock is ticking. Claims for OUSD and OGN will be accepted until 4:35 UTC on April 20. So for those affected, it’s time to get on board and take advantage of this opportunity.

A Glimpse into the Future

Origin’s recent moves indicate a commitment to growth and responsibility. The larger vision is for OUSD to bridge the gap for typical individuals to step into the vast universe of Decentralized Finance. With enhanced security measures and the promise of compensation, the project looks to regain trust and confidence for its users, paving the way toward a promising future in DeFi.