FTP Announcement
Dear FountainProtocol Community,
There was a vicious attack on Fountain Protocol’s LP section on September 26, 2022.
As we continue to recover funds from attackers, the Fountain Protocol team is committed to providing the best possible solution for all stakeholders.
The classic section is not impacted. You can continue to deposit your tokens to earn interest.
Funds from the attack
The following is a breakdown of the funds involved in the attack
Detailed information is as follows.
First, the attacker borrowed WROSE and USDT from the ROSE/USDT pair in YuzuSwap and increased the liquidity of the ROSE/USDT pair in Gemkeeper by excess to make the K value larger and thus affect Oracle’s price on LP.
The attacker then deposits the LP token into the LP section of ftp.cash and uses the manipulated price to over-borrow other LP tokens.
Finally, the attacker returns some of the over-borrowed LP tokens to the transaction pairs borrowed from Yuzuswap, and the rest is exchanged for ERC20 tokens and transferred to the attacker’s own address.
The complete process of the hack can be reviewed on the blockchain browser :
Compensation Plan
We sincerely apologize to our users and community for the loss of assets caused by the attack.
After the attack, we have been actively tracking down the attackers and are focusing more on security optimizations as we think about the future of the Fountain Protocol.
The Fountain Protocol team will use FTP tokens to compensate our community. The FTP tokens in the compensation will be priced at 0.00154 USDT. These tokens will come from the team’s share. And the compensation is already done. Every address should have already received the corresponding FTP tokens.
Summary
Building on the DeFi front is a challenging task. We are fortunate to have great backups, supporters, and community leaders to help us evolve. Through this challenge, our team and our partnerships will be stronger than ever. Now that we’ve had one of the most challenging times of the DeFi project, we’re excited and looking forward to all that’s to come.
Thank you so much on behalf of the FTP team for your unwavering support as we have grown and built along the way.
