ChainSwap Hack: Transparency Update #2
Dear NORD Finance community, it’s been 2 days since the $NORD token was affected by the Chainswap bridge vulnerability.
Nord Finance team working around the clock to ensure all our users and stakeholders are involved in this incident. We respect the NORD Finance community for your patience and support throughout these challenging times. We believe the best foot forward is by being transparent about the issue and implementing a thorough compensation plan to set things right.
More information about the incident can be found at: https://nordfinance.medium.com/chainswap-hack-transparency-update-e029c18ade17
Key points to be aware of:
The attacker was able to mint an additional 500,000 $NORD on BSC and market sold on pancake swap for $101,922 BUSD. This resulted in $NORD price reaching $0.04 on PCS.
The attacker took control of nearly 334,894.720 $NORD on the Ethereum mainnet and sold Uniswap for $325,641 DAI.This resulted in $NORD price reaching $0.788 on Uniswap and other ERC based CEX.
NORD Finance systems, Smart Contracts, and savings protocol remain unaffected, each of which has been audited by Zokyo and Quillhash.
$NORD trading continued on Uniswap, Kucion, Ascendex, Dfyn, and gate_io and as the attacker minted additional tokens and sold on PCS , the BSC contract and bridge was paused by the Chainswap team.
The Chainswap hack incident impacted 20 projects, and Unfortunately, NORD finance was the most affected by this attack on both BSC and ETH sides.
We have noticed most of the projects were unaffected by BSC side additional mints as they were frozen and burned by the Chainswap team.
The Chainswap Vulnerability aftermath: Compensation Plan to Set Things Right
$NORD token holders on BSC / PancakeSwap
- All the $NORD holders who didn’t do anything but held during the pre/post-incident are eligible for a 100% fully unlocked $NORD token on Polygon side on their same address.
- On BSC, few long-term holders panic-sold their Tokens, and we are planning to compensate the $NORD in exchange for the BUSD they bought. This applies only to Holders who held the $NORD token minimum four weeks before the hack (Arbitrage bots and smart contract sells are excluded). We will announce the details after verification of snapshots.
$NORD Staking program holders on BSC
- BSC-NORD Staking holders’ snapshots along with rewards are taken before the hack and will be migrated to Polygon Staking with the 100% $NORD balances along with the rewards earned. Excluding those who bought after the hack and staked.
- BSC CAKE-LP holders’ snapshots along with rewards are taken before the hack and will be compensated with a new LP token with the same ratio as before the hack. All BUSD and NORD Balances before the hack have been taken and compensated 100% in values.
- For now, BSC Bridges are still vulnerable and we will be migrating our BSC LPs to Polygon-DFYN LPs, as it will add additional liquidity along with DFYN rewards with a present APY of 446%. A detailed migration plan will be posted soon for LP holders.
Transacted $NORD on Pancake after the ChainSwap Hack
- Market selling off newly minted 500,000 $NORD on Pancake Swap, which caused the price to reach as low as $0.04. We feel it is an unfair advantage for the buyers on the BSC side, as the token supply increased 2.5 times than the original supply on BSC.
- At the same time, we also acknowledge that few users might see this as an opportunity to buy cheap, which is their own decision.
- Present snapshot details are overwhelmed with many TXs including few from smart contracts and bots. Please fill out a form for us to analyse the impact of $NORD Pancake transactions after the hack. This will help us to determine the actual amounts/impact of the genuine users.
Form : https://bit.ly/NORD-PCS_TXs
- This form is made for the sole purpose of analysing the situation at hand and NORD Finance is not committing any form of compensation plan for the user who traded after the hack, which comes under their own risk management.
- We do our best to safeguard the capital involved for the genuine users. We would be determining the amounts based on the dollar value traded and not the actual amount NORD tokens as the token inflation has happened on the BSC side.
- Deadline to fill this form is on 16th July 12:00PM UTC, Users failing to comply would not be eligible for compensation, if the team decides to provide compensation. (Arbitrage bots and smart contract sells are excluded).
$NORD Buyback fund:
- We are creating a BUYBACK fund of 100K USDT from our Ethereum liquidity. We will be using it to buy back slowly and keep it in a separate wallet. What will be done with this fund will be decided later.
$NORD Tokenomics adjustments :
- Our initial estimated tokens to be newly airdropped for the holders as per above is approximately 370–380K $NORD tokens.
- We are in the final stage of estimating the total number $NORD Tokens to be airdropped. An exact value will be posted soon in the same article and updated with our community on our telegram channel.
- We have decided to cut down these additional tokens from Team, Advisory, and Foundation allocations and airdrop genuine users who got affected on the BSC side.
- We are also updating our tokenomics with extended vesting for Team, Advisory, and Foundation.
- Team and advisory token vesting will be changed from 18 months to 3-years.
- Foundation token vesting will be altered from 2-years to 3 years
- Ecosystem and Rewards vesting will be altered and extend to 5 years of vesting.
- This will allow for smoother compensation of additional inflation that was caused due to the ChainSwap incident.
In case you have any further queries, feel free to get in touch with us. Always happy to help.
About Nord Finance
Nord Finance is an advanced decentralised financial ecosystem designed to simplify DeFi investing by bringing key features of traditional finance to the DeFi ecosystem.
Deployed on the Ethereum Network, it integrates multi-chain interoperability, thus proposing many financial primitives, which constitute savings, advisory, loans against assets, investment/funds management, and swaps.
Nord Finance strives to serve the rising needs targeting novice users and professionals to meet their financial goals.