Indexed Finance, an Ethereum-based project that was previously hacked for $16 million, has successfully defended against two hijacking attempts. The project’s decentralized autonomous organization (DAO) control will now be returned to its founders, who plan to allocate the remaining treasury to the victims of the 2021 hack.In a detailed thread on X, Laurence Day, a former core contributor, explained how the Indexed community overcame the two hijacking attempts on the DAO’s remaining treasury. The attackers had acquired a significant amount of the protocol’s NDX token in an effort to gain control of the approximately $120,000 digital asset holdings through malicious proposals.The first proposal, which lacked a title or description to avoid detection, was thwarted as Day and other community members rallied the Indexed DAO for votes against it. Although the attacker’s proposal came close to approval within an hour, enough “no” votes were cast to prevent its passage.However, as the Indexed team openly coordinated votes against the proposal, Day anticipated the possibility of a copycat attack. Additionally, Day highlighted an additional vulnerability that could jeopardize funds beyond the DAO’s treasury if it falls into unfriendly control.To mitigate the threat of a subsequent attack, the Indexed DAO approved a “poison pill” proposal, granting them the authority to burn the remaining treasury funds if necessary to deter potential attackers.In the anticipated second attack, the assailant initially sought to negotiate for 50% of the remaining treasury, as revealed in on-chain messages. Indexed founder Dillon Kellar responded by proposing $10,000 in DAI stablecoins and warned of burning the entire treasury if the attacker refused.With only four hours remaining until Kellar’s ultimatum, and after attempting to counter-negotiate for $17,000, the attacker ultimately accepted the original offer and withdrew their malicious proposal. Control over the DAO will now be returned to a multisig controlled by Day, Kellar, and the pseudonymous co-founder PR0. The team plans to use the remaining treasury funds to compensate the victims of the 2021 hack.Overall, Indexed Finance has successfully defended against hijacking attempts and is now focused on compensating the victims of the previous hack. The DAO’s control will be returned to its founders, ensuring the project’s future stability and security.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | positive |
| Relevance Score | 1 |
| People | PR0, Laurence Day, Dillon Kellar |
| Companies | MakerDAO, Indexed Finance |
| Currencies | Dai |
| Securities | None |
