GMX Finalizes $44 Million Compensation for V1 Exploit Victims
GMX has wrapped up a $44 million payout to users affected by its V1 vulnerability in July.Eligible users can now claim their compensation through the GMX dApp.
The compensation involved distributing GLV tokens, supported by the DAO treasury. This plan aimed to repair damage from the july 9 exploit targeting the GLP pool’s re-entrancy flaw. The exploit allowed an attacker to manipulate Bitcoin prices and steal around $42 million.
Following the attack, GMX stopped GLP transactions across multiple networks. They negotiated with the attacker, who returned about $37.5 million under a white-hat bounty agreement.
- The GMX DAO added $500,000 in retention incentives for those holding GLV for 90 days.
- DAO funding covered a $2 million shortfall.
- GLP held by the white-hat was burned, restoring value to the remaining GLP.
Meanwhile, GMX V2 remained unaffected, seeing steady trading activity. The team plans to restart GLP redemptions in around 10 days.
Though the exploit initially caused a 28% dip in GMX’s token price and a total value locked decrease from $480 million to $409 million, recovery has been swift. As of reporting, total value locked stands at over $600 million.
With V1 set for eventual shutdown, GMX is focusing on strengthening its V2 infrastructure.
