Layer 2 scaling answer Metis has announced a plan to compensate customers affected by final month’s PolyNetwork bridge hack.
The challenge will distribute 117,000 METIS tokens to impacted neighborhood members. At the identical time, Metis is implementing an enhanced cross-chain structure utilizing LayerZero’s OFT mannequin.
Recapping The PolyNetwork Exploit
On July 1st, a hacker exploited the PolyNetwork bridge to mint and drain liquidity swimming pools of 8.8 million METIS tokens on Binance Smart Chain. Metis responded shortly by eradicating liquidity from PancakeSwap, Stargate, and different DEXes to restrict the harm. This left the hacker solely capable of steal 117,000 METIS from customers.
The exploit didn’t influence the full or circulating provide of METIS on Ethereum or Metis. However, BSC customers had been affected as a result of lack of liquidity for swapping or buying and selling after the hack. To make these customers entire, Metis will distribute 117,000 newly created rMETIS tokens.
Compensation Via Vested Token Model
The rMETIS tokens signify a receipt for the 117,000 METIS allotted for compensation. The rMETIS will vest over time, beginning at a 1:0.5 ratio to METIS on September 14th, 2023. The ratio will step by step enhance till full 1:1 parity after September 14th, 2024.
Affected customers can declare rMETIS till October 14th, 2024 and redeem at any level for the METIS quantity relative to the vesting schedule. This mannequin balances compensation for unaffected customers and restoration for affected neighborhood members.
OFT Structure Provides Superior Cross-Chain Experience
Previously, METIS tokens on networks apart from Ethereum and Metis had been wrapped variations with inferior safety assumptions. To enhance the cross-chain expertise, Metis has upgraded to LayerZero’s OFT structure.
OFT permits actual METIS tokens on BNB Chain, Avalanche, and different chains. Users can earn native METIS rewards by supplying belongings to “USDT by Metis” swimming pools on BNB Chain for instance. This additionally permits seamless Metis bridging with out liquidity pool necessities.
The preliminary DEXes to supply buying and selling in native Metis OFT tokens embody Hermes, Unimaia, Hummus, Netswap, and Hera. Overall, the OFT construction unlocks superior cross-chain operability for the Metis ecosystem.
Metis Takes Action To Support Users And Improve Decentralized Ecosystems
Metis has taken decisive motion to assist customers affected by the PolyNetwork exploit whereas additionally enhancing the cross-chain operability of its ecosystem. The vesting token mannequin offers accountable compensation to impacted neighborhood members.
At the identical time, the transition to LayerZero’s OFT structure permits a superior expertise for METIS holders throughout a number of blockchains. With these efforts, Metis continues working in direction of its objective of bridging Web2 and Web3 and enabling the following technology of decentralized functions.
