Belt Finance to Compensate Users Following $6.23M Attack

Belt Finance said it will compensate users who were directly affected in the 4Belt pool or beltBUSD vault and holders of BELT tokens.

Jun 2, 2021 at 2:46 p.m. UTC
Updated Sep 14, 2021 at 1:05 p.m. UTC

Belt Finance, a platform that provides automated market making for decentralized finance (DeFi), is compensating users following a hack that earned the perpetrator $6.23 million.

  • The platform was hacked May 30 in a flash-loan attack that resulted in an overall $50 million loss for the platform.
  • In a blog post Tuesday, Belt Finance said it will compensate users who were directly affected in its 4Belt pool or beltBUSD vault and the holders of BELT tokens.
  • Belt Finance estimated vault users suffered a 21.36% loss of funds, and pool users lost 5.51%. Overall, the attack cost the beltBUSD pool a combined loss of 50 million BUSD ($50 million), comprising 43.8 million in fees and the 6.23 million the attacker withdrew as profit.
  • In the blog post, the firm provided details on how the compensation plan works, including the airdrop of a remedy4BELT (r4BELT) token, and the next steps in the recovery plan.
  • Belt Finance said it is also creating a buyback fund to increase BELT value to make liquidity mining on BELT as profitable as possible.
  • The firm is committing $3 million to the fund, which is intended to add buy-side pressure to the token and increase its value over time. 
  • Belt Finance said the team has never sold any of its BELT allocation. 
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