Indexed Finance, an Ethereum-based decentralized autonomous organization (DAO), has recently showcased remarkable resilience by thwarting two hijacking attempts and is now preparing to compensate victims of its 2021 hack.
In 2021, Indexed Finance suffered a significant setback with a $16 million hack. In the aftermath, it faced two recent hijacking attempts targeting its remaining treasury. These attackers aimed to seize control of approximately $120,000 in digital assets by acquiring large amounts of the protocol's NDX token. The first attempt, a proposal lacking title and description, came alarmingly close to approval but was ultimately defeated thanks to the collective effort of the Indexed community, led by former core contributor Laurence Day.
Anticipating further attacks, Indexed implemented a "poison pill" strategy. They approved a proposal granting authority to burn the remaining treasury funds to deter potential attackers. This proactive measure was crucial in safeguarding the DAO’s assets against subsequent threats.
The second attacker initially demanded 50% of the treasury. In response, Indexed founder Dillon Kellar offered $10,000 worth of Dai stablecoins, coupled with a warning to burn the entire treasury if the offer was rejected. With only hours left before the ultimatum, and after a failed counter-offer, the attacker accepted Kellar's proposal, withdrawing their malicious intent. This resolution marked a significant victory for Indexed, allowing them to regain control over the DAO, which will now be overseen by a multisig controlled by Day, Kellar, and the pseudonymous co-founder PR0.
The primary focus for Indexed now turns to compensating the victims of the 2021 hack. With control restored and threats averted, the remaining funds in the treasury will be distributed to those affected by the hack, demonstrating Indexed Finance's commitment to rectifying past grievances and reinforcing the trust in their project.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
