Onyx Protocol Community Leader Conducts AMA on Cross-Token Liquidity Market Reimbursement Options

On November 8, Alex, the Onyx protocol community leader, conducted an AMA on the two reimbursement options available for the cross-token liquidity market to address the recent exploit. The security incident occurred on November 1, involving a flash loan attack that resulted in a loss of 1,163.53 ETH worth nearly $2.1 million.

AMA Results Leave Community Unsatisfied

The AMA, attended by over 400 members of the Onyx community, left many unsatisfied with the proposed solutions. The second one received especially little support.

Details of the Proposed Solutions

The first proposal suggests allocating funds for hack compensation from the DAO treasury. Meanwhile, the second proposal offers the acquisition of the protocol by Strike Finance, a decentralized money market.

Community Concerns and Feedback

Despite these changes, users will have an opportunity to withdraw their staked XCN and receive any accumulated rewards.

Some community members find both solutions too drastic and unnecessarily severe, affecting everyone who uses the protocol.

Yet, other forum users strongly advised against selling XCN from the DAO treasury to cover the hack losses, explaining that this could drive the cryptocurrency towards zero, eroding investor confidence in the project. This, in turn, might intensify selling pressure, making it challenging to secure enough liquidity to recover the $2.1 million.

Onyx Team’s Response and Community Skepticism

The Onyx team has not provided specific details on the protocol’s vulnerability that allowed the malicious actor to perform the attack. Some of the Onyx community members believe the recent security incidents and current proposals appear quite “sketchy.”

See also  Aave Community Votes on Ethereum's Gho Deployment

At press time, XCN traded at $0.00088 according to the data from CoinMarketCap, which also reports a 16% increase in Onyxcoin’s value. Although the price slightly declined after the AMA, when it was around $0.00094, it still appears that the cryptocurrency has managed to grow its value despite the recent hack.

### News source: coinpaper.com

By Team