TL;DR
- Onyx shuts down its Ethereum-based lending market following a hack that resulted in a loss of $3.8 million, exploiting a known security vulnerability.
- The community approved the relaunch of the Onyx Core financial network through the OIP-46 proposal, which includes shutting down the lending market and providing full reimbursement to lenders.
- The relaunch, scheduled for October 1, will include a revised white paper and a closed lending structure.
Onyx, a decentralized finance (DeFi) protocol, has decided to close its Ethereum-based lending market after a hack that resulted in a loss of $3.8 million.
This attack, which occurred on September 27, exploited a known security vulnerability that had not been previously addressed. In response to the incident, the protocol received community approval to relaunch its financial network, called Onyx Core, focusing on a stronger structure and governance.
The plan for the relaunch was presented through an improvement proposal, known as OIP-46, which was introduced shortly after the attack. It details a series of fundamental changes to the protocol and its product offerings, including shutting down the current lending market and promising to reimburse lenders the total amount of assets they provided, on a one-to-one basis.
The Onyx Proposal Received Unanimous Support
By September 29, the proposal had received unanimous support from Onyx community members, with no votes against it. The implementation of the changes is scheduled to take place on October 1.
In addition to shutting down the lending market, the protocol’s team also plans to issue a revised white paper to guide the relaunch of Onyx Core as a central product. This new structure will allow users to utilize non-fungible tokens, real-world assets, and cryptocurrencies within the protocol, which will function as a closed lending system.
Hackers Have Already Taken More Than $2.1 Billion
The attack that led to this restructuring involved manipulating an NFT liquidation contract. Given this situation, it has become imperative to improve security measures on the platform. In this regard, the relaunch aims to strengthen the protocol’s protection against future security incidents.
Taking a general overview of security in the crypto industry, it is noted that hacks have reached alarming figures in 2024, exceeding $2.1 billion in losses during the first three quarters. Centralized exchanges have become the most frequent targets of these attacks, raising serious concerns about their integrity and security in the industry. With its relaunch, Onyx aims to regain the trust of its community and strengthen governance and security within the DeFi sector
