Decentralized cross-chain initial DEX offering (IDO) platform Poolz has disclosed that has taken measures to mitigate the impact of a recent security incident. The team’s proactive response helped it to contain the damage from a hack that exploited the token contract for the POOLZ vesting system on March 15, preventing broader contagion.
Some of the POOLZ tokens that were intended for public buyers were stolen and sold. However, the Poolz team ensured that within two hours the token was no longer available for trading. A rapid response team was then assembled to prevent further damage and ensure a similar incident could not be repeated in the future.
Within the first eight hours of the attack, the hacker’s address was flagged on leading blockchain explorers. The team also removed the remaining liquidity from the Uniswap and Pancakeswap decentralized exchanges to avoid arbitrage attempts when the POOLZ price was down by 80%. A complete freeze was imposed on all POOLZ porting on the ChainPort.io bridge.
The same day as the attack, Poolz started work on building a new platform token, POOLX. The token is currently being audited by Certik, ArcadiaGroup, and ChainPort.
The development team will deploy a new contract for a new POOLX token and airdrop it to all addresses on the blockchain a block before the hack occurred to ensure that POOLZ holders will be compensated on a 1:1 basis.
Poolz will also deploy new liquidity pools based on the token exchange rate that was in effect before the hack. In addition, Poolz is planning a compensation model for the community as part of the POOLX distribution.
To support these efforts, Poolz launched a flash fundraiser in the aftermath of the hack. It raised $600,000 within 12 hours to implement new and strengthened foundations to bolster security and create a more robust platform.
“We’re proud of our team’s swift and effective response to the cyber attack on our platform. Our top priority is our community, and we’re committed to providing them with a secure and reliable platform for decentralized finance,” Poolz founder Liam Cohen said. “Despite this setback, we’ll come out stronger with our new token, POOLX, which is currently undergoing an audit. Our treasury is unaffected, and we remain financially stable.”