Following a recent flash loan exploit on their Arbitrum network, decentralized exchange WOOFi is extending an olive branch to the attacker. In an effort, to recover the stolen funds, estimated at $8.75 million, WOOFi has announced a bounty program.
WOOFi is offering a 10% bounty on the recovered stolen funds. This signifies a significant financial incentive for the attacker to return the stolen cryptocurrency. By offering a reward, they hope for a swift resolution and a chance to regain user trust.
Additionally, they have placed a bounty on Arkham Intelligence, a blockchain analysis platform, for anyone who can provide information leading to the recovery of the stolen assets. This broader approach widens the search for information and increases the chances of recouping the lost funds.
Tuesday at 10:49 a.m. ET, an unidentified attacker, used a series of flash loans to manipulate the platform’s Synthetic Proactive Market Making (sPMM) algorithm. By taking advantage of the low liquidity, the attacker significantly impacted the price of the WOO token.
The company reported in a post-mortem report that the attacker had taken around 7.7 million WOO tokens and other assets, which they then sold on WOOFi. As a result, the project’s native token, WOO, was valued at almost zero by the sPMM algorithm.
WOOFi responded to the incident by offering the attacker a 10% white hat bounty in exchange for a recovery of the stolen money. Before redeploying the WOOFi Swap contracts, the company emphasized that it would fix the vulnerabilities.
The statement said, “We will work with top security firms to ensure these vulnerabilities are identified in an earlier stage. It is the first time an incident like this has happened to us, and we want to make sure it doesn’t happen again.
Other WOOFi products are still functional and unaffected, including WOOFi Stake, Earn, and Pro.
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