GMX Compensation Plan: $44M for Affected GLP Holders

How the GMX Compensation Plan Will Repay Arbitrum V1 Hack Losses

GMX compensation plan include about $44 million to holders of Liquidity Providers on Arbitrum who were affected by the July V1 hack. 

Source: X 

The company said users affected by the hack can now claim their distributions. A $44 million distribution plan will be issued in GLV, also pledging a $500,000 incentive pool to users who keep their allocated GLV. The update was shared on the company’s social media handle X. The GMX compensation plan is approved via a community Snapshot vote, distributed GLV, or Liquidity Vault tokens, to eligible GLP holders. 

A Short Brief on why company has announced GMX Compensation Plan

On July 9 it’s V1 GLP pool on Arbitrum experienced a cyber exploit which concluded a loss of $42M due to a flaw in protocol. Though the GMX compensation plan is now ready for its users.

The hacker accepted the company's offer of a 10% white-hat reward for returning 90% of the stolen money in an on-chain message that was transmitted to the attacker's wallet within hours. The crypto exchange was able to recover most of the stolen funds after the exploiter returned millions of dollars in ETH and stablecoins.

How to Claim:

$44Million is available in GMX compensation plan to all GLP holders, in two $GLV tokens, yield-optimising its Liquidity Vaults from V2. The claim includes $2M DAO Treasury support and $500K incentives for holding GLV for 3 months without selling or transfering, equating to approximately 25% WBTC, 25% ETH, and 50% stables.

GLP holders can now claim $500K retention incentives at website Custom solutions for DeFi protocols integrating tokens are in development. Once redemptions are enabled, remaining coins can be sold normally within 10 days.

Despite the Exploit the Exchange Remained Strong

The Exchange remained unaffected by the exploit and has maintained rising volumes and liquidity. The total trading volume as of today is $315,046,915,809, with an open interest of $294,124,809, and a total of 718,239 trusted users. The DAO is developing recovery solutions for decentralized finance protocols that integrated GLP, with token redemptions expected to resume in 10 days. The token price fell by up to 28%, partially recovering to over $600 million. With V1 paused, it is shifting its focus to its V2 infrastructure.