KiloEX users promised compensation after $7 million price oracle exploit
Quick Take
- KiloEX shared its strategy to make users whole.
- The decentralized exchange lost $7 million on April 14 due to a price oracle loophole.
KiloEX has released its resolution plan to address imbalances in trading positions following a $7 million price oracle manipulation attack last week.
The perpetual futures DEX said trades that stayed open throughout the platform’s 10-day pause will be eligible for compensation. Participants were advised to close positions as soon as KiloEX resumes to receive full value, per a Thursday blog post.
“Compensation will be calculated based on the platform’s resume time,” KiloEX said. “Delaying your position closure may lead to differences between your actual PnL and the compensation amount.” Furthermore, KiloEX announced a new time-limited yield incentive for stakers and an upgrade for VIP users.
The multi-chain platform suffered a $7 million loss on April 14 after bad actors tricked KiloEX’s price oracle system. Price oracles feed platforms with token valuations from across decentralized finance to provide investors with fair rates.
Using a wallet funded from Tornado Cash, an Ethereum-based crypto mixer, the attacker exploited vulnerabilities in KiloEX’s price oracle to siphon assets. The oracle gap allowed the hacker to steal funds on Base, BNB Chain, and Taiko networks. A day after the incident, KiloEX asked the culprit to return most of the funds and keep 10% as a reward.
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