We would like to start by sincerely expressing how sorry we are for this whole incident to all of our community, not only as the bEarn.fi team but also as passionate believers of this project.
We hope this will help express to everybody what actually occurred and what will be done to remedy this situation, compensate and also avoid this from happening moving forward.
What actually happened?
On May 07, 2021 — An exploit occurred over on the Value DeFi platform which resulted in the drainage of various liquidity pools, specifically, all custom-weighted VLP pools that are not 50/50 were drained of all funds by the attacker(s), unfortunately.
After draining the funds from ValueDefi, the attacker(s) sold all pool contents and transferred over 4290 worth of ETH out of BSC. Read ValueDeFi incident report by PeckShield here.
How were we affected by this?
Some of you may or may not be asking yourself, why if this was an incident foreign to our own ecosystem, did it affect BDO price as well? Much to our dismay one of the affected liquidity pools on ValueDefi was none other than the VLP 80/20 BDO/BUSD, which contained around 7.2M BDO and roughly 620k BUSD, the same tokens were drained and later sold through PancakeSwap by the attacker(s), creating a big drop in price for our BDO token.
Which specific bEarn services were affected?
- VLP 80/20 BDO-BUSD on https://bvaults.fi
- VLP 80/20 BDO-BUSD on http://bdollar.fi/shares
- Other bVaults using custom-weighted (non 50/50 VLP)
Important note
All of the above pools have been disabled immediately after the incident, and no other Pool/bVault of our bEarn & bDollar ecosystem have been affected, so rest assured no other losses have or will occur.
Going Forward
We have taken immediate action to protect our users from any potential troubles that could arise, such as having the affected pools paused until we are sure they are free of any issues. but we will not limit ourselves to this alone, our major concern is the safety and protection of our community, we have heard your legitimate concerns and so we will be going forward with further actions such as:
- bDEX has been launched as planned but all the custom-weighted pools that were planned will now be removed from it, until we measure and reevaluate the risk, we will only go forward with 50/50 pools from now on.
- Regarding our existing Partnership and future Collaborations with ValueDeFi, this will be suspended until further notice. Besides, we will double-check with them to see if there is any compensation plan and update the community accordingly.
Compensation Plan
Our community is of utmost importance to us, so we will do our best to support those bEarn loyal followers who were directly affected by this incident, even if this occurred outside of our reach, we would like to act in a responsible manner and share the following plan:
- We will compensate 100% BDO to all those who were staking in the VLP 80/20 BDO/BUSD using the DAO fund. (ie: if users staked 80 BDO and 20 BUSD, they will be reimbursed 80 BDO) And those BDOs will be migrated to BDO V2.0 → affected users can claim xBDOv2 as a receipt → burn xBDOv2 to receive BDO V2.0
- The compensation will be vested linearly for 6 months, this process is being done this way to avoid any further hindrance to the value of BDO itself.
- To process this, we will create a special category of Loyalty Card in order to reward and compensate at the same time all those faithful and passionate bEarn Followers. (More details to be provided by adding more information to this response in the coming days)
Timeline
- The compensation will be starting after BDO V2.0 is released (ETA — within the next 7 days)
- A special category of Loyalty Card will also be implemented after the bPower NFT staking goes LIVE (ETA — within the next 14 days)
Final Thoughts
Even though this whole ordeal has been a nuisance, to say the least, we know we will get over this hump in the road together as a united community. bEarn.fi as a team will be working tirelessly as always, there is no doubt this will only make us stronger and more resilient than ever before.
Once again, we would like to say Thanks to the community for the great support through the ups and downs during the last 6 months. We will keep #buidling and delivering our roadmap as well as drive the project toward benefitting our community/users.
About bEarn Fi
bEarn Fi is a cross-chain product in Decentralized Finance (DeFi) that at its core provides yield generation, algorithmic stablecoin, gaming aggregation, cross-chain bridge, treasury, lending, DEX, yield calculator, lottery, NFTs and governance on multi-chain: Binance Smart Chain blockchain (BSC) and Ethereum blockchain.
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Telegram: https://t.me/Bearn_Fi
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Mail: contact@bearn.fi
