DeltaPrime Suffered Recurring Attack with over $4.75 Million Drained
DeltaPrime has now Suffered an estimated loss of $12M from Hackers within two months
DeltaPrime, a decentralized finance protocol, suffered an exploit on both the Avalanche and Arbitrum networks, leading to an estimated loss of $4.75 million.
Moreover, the protocol has paused operations on both chains, the DeltaPrime team has stated they will provide updates as they become available.
Hackers Initial Attack Drained $6M
A hacker stole over $6 million from the Delta Prime decentralized finance (DeFi) protocol by creating an arbitrarily large number of deposit receipt tokens.
According to data from the block explorer Arbiscan, the attacker created over 115 duovigintillion Delta Prime USD (DPUSDC) tokens in the initial attack, which is more than 1.1*10^69 in scientific notation.
DPUSDC represents a deposit receipt for USDC stablecoin held at Delta Prime. It should be redeemable for USDC at a 1:1 ratio.
Despite creating such a large number of USDC deposit receipts, the attacker only destroyed 2.4 million of them, receiving $2.4 million USDC stablecoin in exchange.
The attacker then repeated this process for other deposit receipt tokens, creating over 1 duovigintillion Delta Prime Wrapped Bitcoin (DPBTCb), 115 octodecillion Delta Prime Wrapped Ether (DPWETH), 115 octodecillion Delta Prime Arbitrum (DPARB), and many other deposit receipt tokens.
DeltaPrime Reimbursement and Recovery Efforts
In response to the September attack, DeltaPrime introduced the Reimbursement Token (rTKN). For every $100 lost, users received 140 rTKNs. The firm backs these tokens with future revenue, with 1 rTKN equal to $1. Until all rTKNs are redeemed, it will distribute 33% of its revenue to rTKN holders.
DeltaPrime’s revenue stream, currently reliant solely on liquidations, is highly inconsistent, potentially ranging from a few thousand dollars in a month to over $1.5 million in a single day.
Notably, DeltaPrime’s native token, PRIME, is an essential component of sPRIME, the protocol’s primary utility token. sPRIME provides liquidity within the DeltaPrime ecosystem, and early minters enjoyed an approximate 50% return on investment in the first month.
However, affected users have a choice between holding rTKNs, which offer reimbursement dependent on future revenue, or receiving PRIME instead. rTKNs represent the status quo, with affected users receiving 100% of their lost dollar value plus a 40% compensation for illiquidity and USD denomination.
PRIME is donated by the founding team and follows their vesting schedule, with a cliff until July 2025 and a 24-month linear vesting period. Affected users can exchange their rTKNs for PRIME at a price of $0.884 per dollar lost in the attack, representing a 26.33% discount at the time of writing.
Nonetheless, Users can choose between receiving rTKN compensation or accepting the PRIME discount until Wednesday, November 13th. This choice offers affected users the opportunity to either prioritize immediate liquidity or maximize their potential returns through future revenue generation.
