DeFi protocol EasyFi, a multichain layer 2 lending platform, is looking to bounce back in a major way. In public statements released in recent weeks, the company is showing commitment to the protocol, despite suffering a hacking incident last month.
EasyFi started working for reinstatement to start the month, following hard fork and distribution. The layer 2 DeFi lending protocol also released a detailed interim compensation plan.
The hack last month resulted in the compromise of 2.98M EASY tokens at a value of $25 a token, as well as money living in liquidity pools – transferred to an unknown Ethereum wallet.
Interim Compensation Plan
EasyFi’s addressed a number of different aspects as part of the protocol’s compensation plan; this starts with compensation of 100% of lenders/depositors net balances. The protocol also will release a detailed compensation plan for user’s funds deposited in protocol contracts on the Polygon network. The plan will include a 25% initial compensation and 75% EZ IOU (I Owe You). The IOUs will be 1:1 backed with a variety of benefits from both EasyFi and partner projects. In a Medium post, the protocol has emphasized that making users whole over time was a top priority, with a focus on compensating depositors “unconditionally and in a swift manner”.
Moving forward, EasyFi will also open a round of funds for strategic investors (and has noted that they have already raised a sizable amount), as well as onboard new strategic investors and backers. Raising these funds will allow EasyFi to offer a brand new line of products and bring new, innovative products to market.
In a Medium post, EasyFi released a statement outlining the reinstatement perspective moving forward. This started with partnering with top audit companies to conduct a full audit of the protocol for enhanced security, as well as a detailed audit of security practices. Additionally, EasyFi is partnering with firms specializing in bug bounty programs allowing people to participate in protocol evaluation.
Risk mitigation and a forward-thinking approach isn’t stopping there for the protocol; EasyFi is also working to implement protocol insurance against smart contract failure, as well as positional insurance to protect user’s collateral from being liquidated.
Details on the protocol security and insurance related information will be made public soon.
Following these moves for EasyFi, main protocol launch will take place on Polygon and BSC once again. EZ token holders will have options for a variety of farming and liquidity sourcing programs following the launch. From there, EasyFi will look to continue where the protocol had left off, with a focus on bringing innovative collateral options to market. The protocol will also leverage the opportunity to bring in a new application UI/UX, new access programs with EZ tokens, and a new roadmap and product.
Despite challenges this year, EasyFi is paving a new way with detailed measures to overcome and continue offering unique, innovative DeFi products.