On February 13, Beijing time, Cream Finance, a DeFi lending protocol, was hacked, causing losses of $37.5 million.
To put it simply, hackers used Alpha Homora to borrow funds from IronBank (a zero-collateral cross-protocol loan agreement launched by Cream Finance) for flash loan attacks. Incident review. Please click to read"Cream Finance was stolen with 37.5 million US dollars, and the disadvantages of the rough and fast DeFi development method are beginning to appear"。
This morning, Alpha Homora and Cream Finance jointly issued an announcement, introducing the follow-up matters related to the repayment of funds.
As of press time, the Cream Finance token Cream is temporarily at 144 USDT, a 24-hour drop of 18%; Alpha Finance token ALPHA is temporarily at 1.23 USDT, a 24-hour drop of 30%.
The following isOriginal text of the announcement, compiled by Odaily:
Dear Community Members,
This announcement will clarify and explain the additional debt between Alpha Homora V2 and CREAM.V2 in this attack, and discuss how to resolve it.
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1. Discuss funding
The following is a breakdown of the funds Alpha Homora V2 owes to CREAM V2 Iron Bank:
l 13245 ETH (including: ETH in the attacker's wallet; stored in Tornado Cash for personal use; sent to Tornado Cash Foundation via Gitcoin; sent to Alpha Homora V2 deployers; sent to CREAM V2 deployers);
4,263,139 DAI；
4,032,014 USDC；
5,647,242 USDT；
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2. Repayment Mechanism
Alpha Homora V2 will deposit 1000 ETH from the attacker into the Alpha Homora V2 deployer contract to pay the arrears;
CREAM.V2 will pay the arrears with 1000 ETH deposited by the attacker in the CREAM V2 deployer contract;
The Tornado Cash Foundation will return the 100 ETH donation paid by the attacker to Alpha Homora to pay the arrears;
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3. Loan interest rate
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4. Full Collateral Position
In order to ensure that CREAM.V2 remains fully mortgaged (assets>debts), Alpha Finance Lab promises to lock 50 million ALPHA tokens (about 60 million U.S. dollars at current price) in a time-locked escrow contract controlled by CREAM to Ensure a 2x ratio between escrow funds and unpaid stolen funds.
As the funds are gradually repaid to Iron Bank, these escrowed ALPHA tokens will also be periodically released back to AlphaAlpha Finance Lab in proportion.
If the ratio of escrow funds to outstanding stolen funds is less than 1.66, Alpha Finance Lab will deposit more ALPHA into the escrow contract within 3 days of CREAM's request to achieve a 2x collateralization ratio. If the requirements are not met, CREAM reserves the right to liquidate part of the escrowed ALPHA to repay the remaining debt until the 2x collateralization ratio is reached again.
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5. Final Thoughts
Building on the cutting edge of DeFi is challenging. As we grow, we are fortunate to have the strong support of the strongest builders (developers), investors, and community leaders helping us.
Through this challenge, our two teams have come closer together and our partnership is stronger than ever. Now that we have overcome one of the most challenging times for DeFi projects, we are looking forward to the future of Alpha and CREAM projects.
On behalf of both teams, thank you for your unwavering support as we continue to build.
