Updated at 4:45PM UTC 11.20.2020 (Matthew Liu)We wanted to update the community on our user compensation scenario. While we are confident that there is a path to recovering the capital that was lost, we have begun contingency planning in parallel. Regardless of whether we are able to recover user funds from the attacker, we are committed to doing right by our users.
Over one or more payment installments, the company intends to provide compensation equal to
100% of the value deposited to OUSD by OUSD holders at the time of the exploit. The payment methods, mechanics, and timing are still being structured, so we will need additional time to release the finalized compensation program specifics.
We have begun engineering efforts to reconstruct the state of OUSD balances in user wallets and liquidity pools (e.g. AMMs) at the time of the attack and shortly thereafter. This data capture and analysis will be ongoing, and we plan to offer transparent snapshots once this work has been completed.
We ask that you remain patient with us as we continue working through the data in the next couple of weeks. Completing this work is a prerequisite to launching our full compensation plan.
Importantly, we are not intending to mint or sell any OGN to fund the compensation plan. We also want to assure our OGN token holders that we will still be in a financially sound position to continue operating the Origin Platform (e.g. Dshop, new commerce products, and the next version of OUSD) even if we have to resort to the contingency plan.
Just as importantly, we want to reiterate that we are committed to making OUSD a successful product. We will make sure our users are made whole and plan to aggressively continue building out the product and accompanying ecosystem. We will also be upgrading our smart contracts and engaging in additional audits before re-launching OUSD. Despite being launched less than two months ago, OUSD has quickly demonstrated signs of product-market fit. In the two days prior to the hack, OUSD circulating supply had more than tripled while returning APYs at 50+%. We believe OUSD will be one of the foundational products in DeFi and peer-to-peer commerce over time. OUSD will accrue tremendous value to OGN holders through governance privileges and potential fees.
As a team and community, we will overcome this setback and take OUSD and OGN to new levels in the near future.
https://medium.com/originprotocol/urgent-ousd-has-hacked-and-there-has-been-a-loss-of-funds-7b8c4a7d534c