As you know, on Friday July 30th, the Levyathan project was the victim of a hack, then a bug that caused the loss of the project’s TVL, which was close to $1.5M on the indexes.
To retrace this terrible day for the project, I invite you to read the following article which gives the first details of what happened: HERE.
A few more details about Friday’s events
We now know more about what led to the hack of the masterchef’s ownership. Following a great negligence on his part, the private key of the developer was public on the Github, as it has been noted by a Telegram user.
A new element allowing us to confirm that it was not an inside job since this key was publicly visible by all.
Moreover, the team owned more than 60% of the liquidity before the hack. They then had no interest in hacking their funds.
Also, concerning the emergency withdrawal bug, which is the second crux of the incident that occurred, we confirm the serious negligence on Certik part.
Indeed, the developer changed the emergency withdraw function after the first reading of Certik following their recommendations. Recommendations that were completely wrong and would have led to an even more catastrophic event by causing the total loss of funds on the indexes if the developer had followed their advice entirely.
But the role of the auditing company was also to go back over the code a second time to check that the update had been done without mistakes and that the code correctly performed the function for which it was intended. This is an essential and necessary step in an audit process before going into production. And on reviewing, Certik didn’t notice the error of the emergency withdraw function which caused the bug we all know. The emergency withdraw bug would then have been avoided, if Certik had performed the work we paid them for.
What is the immediate focus of the team?
The team has been significantly affected by these cascading errors and is actively seeking to recover as much of the lost funds that were stored in the indexes as possible.
For this, we are acting on two fronts:
1/ We have created a wallet on which users who have received too much money during the emergency withdraw function can send the money back. We count on the honesty of the community to support each other in these moments. Here is the address of the wallet:
0x6cadA45b257DA674f1169B4e68A59765226Fc9aE
So far, we have recovered $150K from the TVL of the indexes. We are in discussion with other users to recover funds as soon as possible on this wallet.
To encourage the community to send funds back to this wallet, we will assign a trusted third party to co-manage the wallet. It will ensure complete transparency in managing the correct re-distribution to the index holders.
The Binance Smart Chain team has introduced us to a third party able to track the wallets that have received too much money from the emergency withdraw function in order to help us identify the users that benefited from this EW bug.
2/ On the other hand, the team is currently discussing with Certik who is partially responsible for the loss of funds. We intend to ask them to reimburse our users and we will defend your interests until the end. We will of course keep you informed this week of the progress of the negotiations.
Who will benefit from the recovered funds?
The funds that will be recovered will of course, go to the users who owned indexes.
Each user will get back a % of the total amount based on what they represented in the TVL.
No user or community will be favored in particular. Team wallets will be excluded.
This mission is our most immediate priority! The Levyathan community is vitally important to us and we will not let you down, rest assured.
For this very same reason, we do not want to disappoint the hopes our supporters have placed in us, so we intend to continue our project to deliver the promised product in an even better version.
What about LEV holders and users in LP?
The team does not want to abandon the users and those who believed in the project from the very first days. So we want to continue and launch a V2 to support our supporters!
A new token that, within a project that will be revamped, will become the nerve center of the ecosystem. The program will include completely revised tokenomics, taking into account the relevant feedback from the members supporting the project.
We are currently working with the entire team to release a solid project that will meet your expectations. Mistakes have been made, we have learned from them, and we intend to last on the market, by your side.
From this week, we intend to present to you our clear and precise vision for V2.
I hope that this article will allow you to see a little more clearly what we are doing now and how we want to take the project far into the future.
Thank you all for your support. We are counting on the community to help us get back on track.
Best.
