GMX Reveals Barnstorming $44M Reparation: Inside the GLP V1 Hack Fallout

GMX Wraps Up Compensation for Exploit Victims

GMX finished its compensation plan worth around $44 million for users affected by a July vulnerability.

This plan aimed to help GMX Liquidity Providers (GLP) on the Arbitrum network who suffered losses during a V1 exploit earlier this year.

the payouts came in GLV tokens, backed by the DAO treasury. There were also incentives for GLP holders to keep their funds.

• Payouts covered $42 million drained due to a re-entrancy flaw on July 9.
• GMX rewarded attackers who returned $37.5 million under a “white hat” bounty.
• Users can claim compensation thru the GMX dApp.

The guidelines for GLV tokens match GLP’s pre-exploit mix: 25% Wrapped Bitcoin,25% Ethereum,and 50% stablecoins. Additionally, the DAO added retention bonuses and covered a shortfall with its treasury.

GMX V2 stayed safe and saw growing trading volume after the exploit. GLP redemptions should restart in ten days.

The event made GMXS token drop by 28%. However, the total locked value rose to $600 million. With V1 paused, the focus moves to V2 improvements.