Harvest Finance has launched a user compensation program

10.11.2020
The Harvest Finance decentralized finance protocol developers are launching a program to compensate users affected by the recent hacker attack;

On October 26, hackers conducted a successful attack on Harvest Finance, using an instant loan to manipulate the prices of fUSDT and fUSDC. After the attack, FARM token rate collapsed by 65% in just one hour;

Initially, Harvest Finance offered a reward of $100,000 to those who could convince the attackers to return all the stolen funds. Then the reward amount increased to $1 million, but not all members of the community took this decision with enthusiasm, believing that it was better to spend this amount on payments to affected users;

Later the developers of Harvest Finance wrote on Twitter that the compensation payments will be made in special GRAIN tokens. They will be credited to users’ accounts in proportion to the losses incurred. For example, if a person has lost 100 USDC, he will receive 7.39 USDC or USDT and about 92.6 GRAIN. The project will distribute to the victims about $2.5 million, which were returned to the developer address by the attackers in the form of USDT and USDC tokens;

Harvest Finance management added that the distribution will be based on $33.8 million. Earlier it was reported that attackers managed to withdraw more than $24 million, but later this amount was recalculated. GRAIN tokens can be used for stacking on the decentralized Uniswap exchange and will be remunerated in FARM tokens. Developers will continue to test the system and will publish detailed information later;

According to DeFi Pulse, in October, the value of assets in the Harvest Finance protocol reached $700 million. To date, the figure is
declined to $480 million. Nevertheless, this project is the eighth in the DeFi Pulse rating by the total value of blocked assets;