Flamingo Finance announces Asset Support Initiative in wake of third Poly Network hack

Flamingo Finance has unveiled a unique initiative to offer support to users affected by the recent Poly Network hack. The Asset Support Initiative aims to mitigate the impact of the de-pegging of f- and p-assets from their underlying tokens by compensating users for 50% of their losses. Despite the vulnerability originating from Poly Network’s infrastructure, Flamingo Finance has taken proactive measures to communicate with its users regarding the incident. The hacker behind the exploit, which targeted Poly Network’s Cross-Chain Management Contract, made off with approximately 20% to 25% of all cross-chain assets, resulting in a devaluation of unwrapped versions. In response, Flamingo Finance has developed the Asset Support Initiative, which will provide affected users with compensation of up to 40 million FLOCKS, to be distributed over a two-year period based on actualized losses. FLOCKS, an evolution of FLUND, will offer holders dividends from platform fees and governance weighting for participation in decision-making. Flamingo Finance plans to introduce an Asset Actions page for users to migrate their assets to a new cross-chain standard, and upon migration, the ratio of wrapped to unwrapped assets will return to 1:1. The distribution of FLOCKS will commence monthly over two years. If funds stolen during the hack are recovered, FLOCKS payments will be halted, and the recovered assets will be distributed to affected users. Flamingo Finance emphasizes that the details of the initiative are subject to change pending ongoing investigations and negotiations. Users are advised to follow the project’s social media accounts for updates.