The IDO platform Poolz has made public the steps it has taken to mitigate the effects of a recent security breach. The team’s quick action has assisted in limiting the damage and averting a wider outbreak.
A hacker was successful in taking advantage of the token contract for the POOLZ vesting mechanism on March 15. Some of the tokens that were distributed to public buyers were bought and sold illegally. The Poolz staff reacted promptly, and the token was taken off the market for trade within two hours. In order to limit additional harm and guarantee that a similar tragedy wouldn’t happen again, a rapid response team was put together.
Poolz was successful in getting the hacker’s address highlighted on top blockchain explorers within hours of the incident. In order to safeguard users, the team also eliminated all remaining liquidity from Uniswap and Pancakeswap. On the same day, Poolz started developing POOLX, a new platform token. At the moment, ChainPort, ArcadiaGroup, and Certik are auditing the token.
In the wake of the tragedy, a fundraising drive was started to aid Poolz’ efforts. In under 12 hours, $600K was raised to put new, stronger foundations in place. For the benefit of all users, this will improve platform stability and security.
Poolz Founder Liam Cohen said: “We’re proud of our team’s swift and effective response to the cyber attack on our platform. Our top priority is our community, and we’re committed to providing them with a secure and reliable platform for decentralized finance.
“Despite this setback, we’ll come out stronger with our new token, POOLX, which is currently undergoing an audit. Our treasury is unaffected, and we remain financially stable. We’re dedicated to our community and DeFi and we thank you for your support.”
After a new POOLX contract has been implemented, POOLZ holders will get a 1:1 compensation in the new POOLX token, and new liquidity pools based on the token exchange rate before the hack will be created. In addition, as part of the distribution of POOLX, Poolz is creating a compensation scheme for its community.
It has also released a roadmap outlining all steps to be taken to further mitigate the effects and gain the trust of the community.
- In preparation for its formal announcement to halt all Poolz trading at 04:43 UTC (TG: https://t.me/Poolz Announcements/2207), the team is reviewing the data, capturing screenshots of all holdings before the breach, and taking a security timeout.
- Every POOLZ holder seen in the screenshot will be entitled to a new POOLZ token in a 1:1 ratio.
- The relevant chart history in CMC and GC will remain, with the exception of the exploit hack, and a new POOLZ token (referred to as “POOLX”) will be distributed.
- A 10% increase in total supply will be added to POOLX to support ecosystem rewards.
- Certik, ArcadiaGroup, and ChainPort will conduct an audit of POOLX’s token and locking mechanism.
Prior to the Event, New POOLX Terms for Poolz holders:
- Up to 500 POOLX: 30-day daily vesting with a 3% bonus after a 1-month cliff.
- 501 – 1,000 POOLX: 1.5 month cliff, 60 day daily vesting, with 3% bonus.
- 1,001 – 20,000 POOLX: 90 days of daily vesting with a 3% bonus after a two-month cliff
- 20,000 POOLX and above: two months of cliff time, followed by 120 days of daily vesting and a 4% bonus
Calculating Distribution for POOLX
- Before-hack POOLZ token owners (including those with wallets, the Poolz web, and CEX) will get a 1:1 ratio (03:09 UTC)
- Prior Official Announcement ratio of 1:1 for POOLZ token holders (04:43 UTC)
- Before the hack (03:09 UTC) and before the official announcement (04:43 UTC), POOLZ holders who were locked in the ChainPort bridge and transmitted tokens to the bridge would get POOLX at a 1:1 ratio.
- Owners of POOLZ tokens who submitted their tokens to any CEX after the hack (03:09 UTC) and before the official announcement (04:43 UTC) will get POOLX depending on their POOLZ purchase price in USD to the sender wallet to CEX.
- Participants in Poolz IDOs may be any cliffed token holder.
- In a few hours, the POOLZ token will be available for trade again, first on DEX and subsequently on CEX.
- Poolz community members who have IDOs vested tokens in Poolz contracts will get POOLX tokens with a 12-month vesting period and the same USD value.
- A 3%–4% bonus will be given to Poolz holders based on the number of their holdings.
- During 48 hours of the new liquidity or in accordance with the CEX schedule, POOLZ holders who held their tokens in CEX or Bridges will be eligible for POOLX.
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