Hundred Finance announces to shut down its lending operations

Hundred Finance has announced that it is soon going to shut down its lending operations. This comes days after the DAO passed a proposal to sunset the lending services of Hundred Finance. The proposal was passed with a massive 98.54% strength in favor of the move. The remaining portion of the community believes that efforts should be made to recover the lost assets instead of wrapping up the entire ecosystem.

Anyone who was affected by the April 2023 exploit can connect with Hundred Finance through Discord for updates.

A proposal was passed after the holders of $mveHND came together to review the statements. Now a consensus has been established that the lending operations will be turned off, and affected victims will be compensated as & when funds are recovered or become available. The hacker reportedly exploited the network for USD 7 million by identifying a weak point.

Hundred Finance and its associates have attempted to track the funds and the hacker; however, nothing fruitful has been achieved. Priority is to make sure that the victims are compensated before the holders of the token, that is mveHND.

With lending services turned off, all the resources will be directed to make up for the loss that the platform has suffered. The team has committed to compensate for the loss, and holders are second in the line. While it will take time to compensate the victims, Hundred Finance has assured that closing the operations will help them minimize the loss. There is no tentative timeline about how many months, if not days, it will take for them to make a recovery.

The proposal simply says that victims will be compensated as and when resources fill up. Assets that will be released are:

  • 1,117,218 USDC
  • 191,449 OP
  • Velodrome veNFT

And other tokens of negligible value and any subsequently recovered assets.

USDC and ARB will be distributed immediately, with others lined up for later.

Hundred Finance has called the shutting down of its operations a regrettable moment, clarifying that users will still be able to withdraw their assets at a time when efforts are underway to recover funds. Users have started to liquidate their holdings.

The voting was live for a week starting July 27, 2023. The Quorum was set at 50%. Meaning at least half of the holders had to agree for Hundred Finance to take the drastic step of sunsetting its lending operations. Interestingly, all the votes were submitted with no single user abstaining from the process. The Quorum recorded was 3.2 million out of 3.4 million.

This series of events comes after Hundred Finance announced a bounty of 500k USD. Hundred Finance added that the hacker would be allowed to keep 10% of the stolen funds if they choose to return all of it. An offer was even made to the hacker by Hundred Finance, but they decided not to take it.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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