The yield aggregator and Web3 DeFi tool, Rari Capital, cruised through a huge loss of around 2600 Ether worth approximate $10 million. The malicious hacker got access to the exploit in the Ether pool and removed every trace of funds from the firm; however, $6 million was retained by the Alpha Homura Development team.
Rari Capital began as a fair launch project that did not sell tokens or raise funds from VCs but instead left the control completely in the hands of its users for its operation and management. At present, the DAO of Rari Capital holds hardly 1% of the supply of $RGT, and the firm does not even have an inkling of the firepower required to bail out the users of the platform. Given that Rari Capital has no treasury of backup reserves, it was incredibly difficult for the firm to proceed with its operation. A protocol called RIP-1 was proposed to provide the platform with liquidity initiatives and developer incentives for the $RGT, but the proposal was never implemented by the platform. The amount of 2M $RGT set aside for scaling the team for the initiation of the protocol was given back to the DAO for the reimbursement of the lost funds.
The reimbursement of the lost funds
The hacking incident and the loss of $10m in Ether has led to the implementation of the following steps:
- Initiation of RIP-1 will take place finally, and it will be followed by a merger of the Rari Capital team with the firm’s treasury. The proposal shall be backdated to unlock a significant portion of tokens for reimbursement.
- The proposal submitted to the DAO regarding the reimbursement of funds shall be published within a few days.
- Every user of Rari Capital shall be bailed out by the reimbursement of funds.
- The team of Rari Capital shall cease to exist, and only contributors to the protocol shall be in charge of the management of the firm.