In what could be an important step towards the maturity of the decentralized insurance area, a lawsuit was filed yesterday against the DeFi insurance protocol after Dai hacked $ 19 million Pickle Finance – and still most users will see a payment.
According to a statement filed on Cover on November 21, there were 99 votes at the time of publication, casting nearly 9,800 COVER tokens – over 99% of the respondent’s tokens – to vote yes to pay affected cover owners. Cover’s technical adviser Evan Martinez tweeted that if the vote goes through, prosecutors will go to the health claims committee “to determine if he is eligible for compensation.”
Although the hacker managed to escape with around $ 19 million in Pickle users’ money, Cover made it clear that no payment amount would cover the damage. In an interview with Cointelegraph, a semi-anonymous developer and main contributor to Cover, said that with CVC approval, “all PICKLE CLAIM token holders will be able to redeem one CLAIM token for 1 DAI”, provided the Health Approval Commission accepts pay the holders 100% compensation, as well as wait for Alan.
There are currently over 340,000 Pickle CLAIM tokens traded in the secondary markets for $ 0.90. Alan pointed out that this could lead to some “arbitrage opportunity” for traders who expect the offer to be accepted.
The Pickle statement is one of the first test cases for a decentralized insurance protocol using a blockchain snapshot to vote on insurance coverage. Since many in the crypto space have been affected by hackers who have exploited since the start of the DeFi boom, the response on social media has been favorable, but also skeptical.
Many people are worried that Cover will make the decision because yesterday’s Pickle attack did not use a quick loan attack – a common tactic for hackers targeting DeFi protocols – but rather a malicious tool that some claim is similar to exit fraud. The hackers managed to exchange money between the malicious fake contract and Pickle’s profitable treasury called the cDAI jar, which made users notice that the glasses were empty.
In line with the coverage guidelines, the draft states that it will pursue claims of exploitation or certain attacks on smart contracts – which specifically pertain to rapid lending attacks – resulting in “significant loss of money from a smart contract or a smart contract system.” to another. “An address not controlled by the original owner or owners, or the funds become irrevocable forever.”
No matter where Carpet ends up, her decision will have implications for the DeFi community. In addition to Pickle Finance, hackers targeted several DeFi protocols this year, resulting in the loss of millions of dollars, from Harvest Finance, Value, Acropolis, Cheese Bank and Origin, and many more. This can help with a powerful set of protocols, such as insurance coverage, to reduce the impact of such attacks.
Alan Said Cover:
I think DeFi coverage is important for mass adoption of these protocols. Some of these protocols that people make will change the financial industry forever, but since we are out especially early, there are many attack vectors, and many of them are unknown. The mission is to give users the opportunity to try out protocols. Change the rules of the game by continuing to secure exploitation risk. ”
Voting ends at Pickle on November 23 (Nov) at 11:59 AM EST, USA.