The Onyx Protocol suffered an exploit on its oPEPE market due to a bug in the rounding implementation. Thus, a ~$2.1m protocol loss occurred to the lending markets of the protocol. XCN Staking and Uniswap liquidity pools remain unaffected. The DAO is working with security partners to track down the hacker and then report the hacker to law enforcement.
The Onyx DAO will utilize, for the first time, the $40 million XCN token facility it has, in part with LDA Capital and others, to sell XCN from the DAO treasury through this facility to compensate the Onyx Protocol directly for the hack to ensure users receive funds that can become available.
Earlier, the Onyx DAO preferred to utilize something other than this 40 million dollar XCN token facility due to how the token sale structure is to access these funds. However, given the circumstances, we will take this opportunity to ensure users are made whole to the best of the DAO’s ability. We will utilize any additional avenue we have to expedite the utilization of this facility.
Onyx Protocol will deploy this proposal to ensure compensation for the affected users.
We apologise for any inconvenience, and we will work with the security experts and the community to ensure better security practices in the future on new market deployment. Moving forward, until better practices are established with the community, all salaries to the developers and DAO will be halted until further notice. We understand that this is a time we need to rebuild trust, and we will work with the community to establish this.
The on-chain votes will occur on approximately November 6th to ensure sufficient time for users who want to participate to stake their XCN to vote on this. There are currently two propositions:
The community will vote.