Platypus, a decentralized finance (DeFi) firm, is currently working on a compensation plan for users who suffered losses following a flash loan attack that drained almost $8.5 million from the protocol.
The attack affected the protocol’s stablecoin dollar peg. In a tweet on February 18, Platypus assured users that they were working on a plan to compensate for the damages and asked them not to realize their losses in the protocol. According to the protocol, asset liquidations are currently paused.
Platypus has also disclosed that various parties, including legal enforcement officials, are involved in the funds’ recovery process.
The company is exploring ways to recover part of the funds, which are currently locked up in the Aave protocol. However, it would require the approval of a recovery proposal in Aave’s governance forum to recover the funds.
As the recovery process continues, Platypus promises to disclose more information regarding the next steps soon. Users affected by the attack can rest assured that the company is actively working to address the issue and provide compensation for their losses.