We regret to inform you that the losses incurred during the flash loan attack have caused a significant impact on our platform. Despite the situation, we would like to thank you for your support during this unprecedented time and would like to inform you that we have taken both preventive and corrective measures described below.
It consists of two parts, first would be from our product point of view and the second would be our recovery strategy:
Part 1 — Preventing issues from happening again
From the incident, we have lost $538K value from the attack. We are constantly following up with the attack and trying our best to get hold of the stolen fund.
For the exploit itself, our team has already managed to fix the issue and prevent future attacks of a similar fashion. Minting and redemption could only be made by users and not smart contracts, and users are advised to be done through the user interface only.
We have also imposed 300,000 tokens transfer limit for each transaction. This would affect the following:
- Staking/unstaking DOPX/TWX, both on Dopple, Twindex, and other platforms
- Providing/removing liquidity for pools with DOPX or TWX as a part of the pair
- Swapping DOPX/TWX to/from other tokens
- Transferring DOPX/TWX to other addresses
- Quick mint for both KUSD and tAssets (as it involves buying DOPX/TWX behind the scenes)
This would guarantee that flash loans would not be able to cause severe damage and corrective actions could be made promptly.
The team will be purchasing insurance with the leading protocol (TBC). It will take some time for our platform to proceed with applications but we are highly committed to further guarantee your funds’ safety.
Part 2 — Recovering damage from the incident
The long-lasting damage from the attack that affects tokenomics is that the total supply of TWX has increased drastically. There is an approximately 50% increase of the total supply for a total of 15 million TWX. This means that in theory, the price will dilute by approximately one-third. In order to mitigate the problem, we are looking for ways to aggressively reduce the excessive supply to prior conditions.
As a preliminary action, we adjusted TCR to 70% to increase the burn rate of TWX. In addition, we increased the multipliers for tAssets-related pools so that more people will mint tAssets and burn more TWX from the system.
The Twindex treasury we had earlier is dedicated to security audits and insurance as mentioned above, as well as part of the recovery plan.
Moreover, from now on, the fees that we will receive on Twindex will be used to buy back TWX from the market and burn them to reduce the supply. We do not have a fixed schedule for this to prevent price manipulation, but the total value to be bought back should be at a total of $538k across time.
Last but not least, we are working harder than ever to boost marketing efforts to bring the price back organically which is the healthiest method to strive for in the long term.
Should you have any more questions, we will host a text AMA session. The exact time will be announced later. We would love to clarify all the questions you have so you could invest in our platform with full confidence.
We would like to confirm once again that the exploit is already resolved by the team and will continue moving forward.
Despite the loss, we still believe that we are capable of driving the platforms to their full potential and will work hard for gaining the trust of the users and investors.
We are having some EXCITING NEWS coming up soon so please stay tuned!
Dopple and Twindex Team