Cream Finance to Pay Back Users $19 Million via Protocol Fees Following DeFi Hack

September 03, 2021, 11:45 AM AEST - 3 weeks ago

Cream Finance (aka C.R.E.A.M.), a popular decentralised lending protocol, has allocated 20 percent of all the fees it charges to repay affected customers from a recent exploit in which it lost US$19 million.

Cream has announced repaying affected users after a flash loan hack at the end of last month. The team said it will post Cream collateral with Flexa, creator of AMP, to ensure the debt is entirely paid.

Additionally, the Cream team is offering a 10 percent bug bounty to the attacker and up to 50 percent for third parties who can assist the protocol to recover the funds.

We learned from this exploit and will use it as an opportunity to strengthen our protocol. Exploits are setbacks but this won’t stop us from fulfilling our mission to drive capital efficiency and meet the decentralised lending needs of individuals, institutions and protocols.

C.R.E.A.M. Communications announcement

At first, it was thought the hacker had stolen just over US$19 million, but after updating prices the total loss surpassed US$37.5 million.

Not the Best Year for Cream Finance

As Crypto News Australia reported this week, Cream Finance was exploited for the second time in six months. On August 31, an unknown attacker managed to drain 462 million AMP and 2,800 tokens – worth US$29 million – from its vault. According to blockchain security firm PeckShield, the attacker took advantage of an error in the integration process of AMP, forcing the protocol to halt supply and borrow on AMP to stop the exploit.

Five months ago, Cream and PancakeSwap suffered a DNS attack following several notices shared on social media, leaving users exposed to the protocols’ websites.

It’s always advisable to DYOR (Do Your Own Research) before investing in a DeFi protocol, as hackers, scammers and other malicious actors are thriving in this ecosystem.

Disclaimer: The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.