Cypher announces recovery plan, says it will ‘socialize’ losses in initial stage
Cypher announced that losses from its exploit will be distributed among users in an initial stage, then compensated through protocol revenue when the platform relaunches. Crypto trading platform Cypher has published a plan to recover from its $1 million exploit, stating it will “socialize” losses across the platform in an initial stage of the recovery . In the first stage of the plan, the Solana-based trading platform will produce a “pro rata redemption package” of current assets it possesses, which will become withdrawable by users through a web interface. However, the platform does not currently have enough funds to pay back all depositors, so losses will be distributed across all accounts in this initial stage rather than being borne by any particular individual or group. In the second stage of the recovery process, the protocol will raise funds through an initial DEX offering (IDO), and these funds will be used to pay for audits and further development. At the same time th
