Platypus Updates Compensation Plan: At Least 63% Of Funds Will Be Refunded To Affected LPs

Platypus, a stablecoin trading project on the Avalanche chain, announced its compensation plan and details of the attack after the project was attacked. After the attack, about 35.4% of the funds remained in the main pool. Any surplus that Platypus retains in the main pool will be fully used to compensate the losses of affected LPs. Since Platypus has recovered $2.4 million (17.7% of pre-attack assets) from the attack contract, approximately 53.1% of the pool funds will be returned to all affected LPs. Platypus stated that it will be in touch with the stablecoin issuer to recover the lost stablecoin, and to facilitate negotiations, the vault will not be used initially for the refund. The treasury will be set aside for six months, and if the situation improves, the entire $1.4 million (10.4% of pre-attack assets) treasury assets will be distributed to all affected LPs. This means that at least 63% of the funds will be distributed to users regardless of whether the stolen funds are recovered later. Additionally, if Platypus’ proposal to Aave is approved and Tether confirms the reminting of frozen USDT, approximately 78% of user funds will be recovered. In mid-February, Platypus was hit by three separate attacks, causing a total of $9.19 million in damage.