Metis Provides Retribution for Users Affected by PolyNetwork Bridge Exploit

Metis to distribute 117,000 METIS tokens to users affected by last month’s exploit, while simultaneously implementing Layer Zero’s OFT architecture for METIS tokens on other chains.

TORONTO, ON / ACCESSWIRE / September 14, 2023 / Today, Metis announced a two-part plan to support community members affected by the hack of third-party bridge, PolyNetwork, which took place on July 1st. Metis is allocating 117,000 METIS from protocol-owned liquidity in order to compensate affected users.

Background

On July 1st, a malicious actor managed to mint and pull all available liquidity on PolyNetwork. The hacker minted 8,882,912 METIS on BNB Chain using the bridge’s mint and burn function. Metis responded quickly, pulling all liquidity from PancakeSwap and Stargate as a temporary security measure. Liquidity was also removed from Netswap and the PolyNetwork bridge was shut down, leaving little to no liquidity for either token, which led to the hacker only being able to steal 117,000 METIS tokens from users’ funds.

Fortunately, because the rest of the newly minted METIS tokens had no way out of the BNB Chain and there was no significant METIS liquidity, the exploit had no impact on total supply or circulating supply of METIS on the Ethereum or Metis networks. This means users on neither network were directly affected. However, users holding METIS tokens on BNBChain were affected, as there was no liquidity available for swapping and no active liquidity pools following the exploit. Retribution in vested tokens is being provided to take into consideration unaffected users and provide a balanced distribution model.

Recompensation Plan

Metis will be issuing on demand 117,000 rMETIS tokens in order to compensate affected users in a responsible manner. The rMETIS token is a receipt token backed 1:1 by 117,000 METIS tokens allocated by the MetisDAO Foundation.

On the first day of deployment of the vesting contract, set for 14 September 2023, 1 rMetis token will be equal to 0.5 METIS, gradually scaling up to full 1:1 parity after 14 September 2024. Users who claim their rMetis tokens will be able to redeem whenever they wish for an equivalent amount of METIS relative to the time of redemption.

Community members whose funds were affected by the exploit have until 14 October 2024 to claim their share of rMetis tokens.

OFT METIS Token

Previously, users interacting with the METIS token on other chains besides Metis and Ethereum Mainnet, were interacting with wrapped versions of METIS, which didn’t count with the same security assumptions as native METIS does.

In order to provide a safer alternative to METIS holders on other blockchains, Metis has upgraded its cross-chain token structure to the innovative OFT model developed by LayerZero.

Users will be able to own real METIS on the other chains OFT is launched on (Metis, BNB and Avalanche, to start). Users who supply USDT to the “USDT by Metis” pool on BNB will earn real Metis rewards, not a wrapped bridge version. Among other opportunities for holders, this will allow integration of real and native Metis into cross-chain applications; seamless bridging without LP requirements. The DEXes that will be trading Metis on each participating chain include Hermes, Unimaia, Hummus, Netswap, and Hera.

About Metis

Metis is an EVM-Equivalent Ethereum Layer-2 protocol focused on bridging the gap between Web2 and Web3. Metis provides users with a secure, decentralized, and scalable easy-to-use network. By combining a robust Layer 2 with on-chain credentials and Decentralized Autonomous Companies (DACs), Metis is building the perfect ecosystem to host open and trustless collaboration, secured by Ethereum.

CONTACT:
Colin Landers
[email protected]

SOURCE: Metis

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