DeFi Origin Protocol Starts Accepting Compensation Claims After $7M Hack

Origin Protocol will begin accepting compensation claims from users who were affected by a $7 million hack that occurred back in November 2020.

January 21, 2021 | AtoZ Markets – The project management of the DeFi Origin protocol announced it will be making good on a December promise to accept compensation claims from more than 700 victims of a $7 million flash loan attack on the protocol’s Origin Dollar (OUSD).

The developers plan to launch the Origin protocol again, but before that it is necessary to reimburse clients for losses resulting from the hack attack.

Origin Protocol Will Make 100% Compensation for Losses in OUSD Tokens

Clients will receive 100% compensation for losses in OUSD tokens. In addition, users who have lost more than $ 1,000 in the hack will receive OGN protocol control tokens. Tokens will be locked for a year, but they will participate in staking, their holders will receive up to 25% of annual income.

According to Origin co-founder Josh Fraser, the project hopes to “build trust” with users through the indemnity program. Fraser himself still hopes that Origin will become a DeFi industry opportunity for “any average person.”

The statement also emphasizes that smart contracts have passed several security audits, and the team has worked for several months to ensure the security of the protocol. Users will be offered optional insurance for crypto assets involved in “profitable farming”.

“We study attacks thoroughly and learn from the mistakes of other projects. We can confirm that the Origin code is not affected by such vulnerabilities. Our main task is to make OUSD safe and one of the most profitable options for participating in DeFi,” the developers note.

As a reminder, the Origin protocol was launched at the end of September 2020. However, in mid-November, hackers withdrew more than $7.7 million worth of cryptocurrencies from the project.The attackers used an attack using instant loans and were able to get $5.5 million in ETH and $ 2.2 in DAI.

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