Umbrella Network — Update on Chainswap Hack
Update to the Chainswap Hack
We wanted to give the community another update to the Chainswap hack, and some of the additional things we plan to do as part of the recourse to the situation.
This is a followup to our initial post on the Chainswap hack, so for those who did not read that, please catch up on the situation by reading that first.
Update to Chainswap Hack Details
On Saturday July 10th, at around 4pm EST, hackers attacked Chainswap’s contracts and stole the tokens of more than 10 projects, including Umbrella Network, Antimatter, Dafi, Option Room, Blank, Razor, Oro and others.
Hackers stole a little over 3 million $UMB tokens on ETH from the Chainswap vault, which was the entirety of the UMB tokens available there. We have now come to understand that the hackers also managed to mint an additional 20 million in UMB tokens on the BSC side, but did not manage to sell them before all UMB tokens there were frozen.
Action Plan
While we will not need to change any of our token contracts on the Ethereum side, it has become apparent that we will need to create a new UMB token contract on BSC to address the previously mentioned issue of the additional tokens minted by the hackers.
Our plan to address this will be to issue the new token contract sometime within the next week, and airdrop the new UMB tokens to all token holders on BSC to replace the frozen ones on a 1:1 basis. We will also be airdropping an additional % of new UMB tokens to all UMB token holders on BSC as a bonus, in an effort to address some of the concern around the opportunity cost of having UMB tokens frozen while we investigated the hack.
In order to encourage longer term holding of the tokens, we will be implementing a tiered bonus system. After the new UMB token is airdropped, token holders can choose to hold onto those new UMB tokens. You should hold in the wallet we airdropped to, and if you hold for 25 days, we will airdrop you a 25% bonus of new UMB tokens, and an incremental 25% for every additional 25 days you hold, up to a total of 100 days. The schedule would look like this:
The bonus is tiered so you must hit the 25, 50, 75 and 100 day thresholds to get those tiers of bonuses. The total bonus is cumulative, so if you hold for 100 days, you will get a total of 100%. We will be announcing details on how this process will work in the near future, so please stay tuned for updates on the new contract issuance, and timing of the airdrop and other details.
In terms of the $UMB token buyback scheme we initiated to counteract the additional $UMB sold by the hackers, as of 15th of July, Umbrella has already bought back about 90 ETH worth of $UMB, with a remaining 20 ETH still to be spent. We are keeping the 110 ETH worth of $UMB in a publicly disclosed wallet (0x87ea777f9909e233a569224a53A4873FeC97D5d3), and as a community, will decide on what to do with it. We will be having a community vote, after the full buyback is completed, with several options. Please stay tuned.
We have already been working on our own asset bridge for bridging across ETH-BSC as well as with other future supported chains. We will be planning to launch this bridge in the coming weeks, after it is extensively tested and audited in order to be both safe and secure. Please stay tuned for an update on this in the near future as well.
Again, thanks to the community for your support. We hear your concerns, and will continue to deliver in the best interests of the community.
The Umbrella Network Team
