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DeltaPrime's Path to Regrowth: A Robust Plan to make all affected users whole again.

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Paid for by DeltaPrimeOct 22, 2024
This paid press release is provided by DeltaPrime and was not written by CoinDesk. CoinDesk does not endorse and is not responsible or liable for this content.

DeltaPrime, a leading DeFi prime brokerage, has unveiled a robust reimbursement plan following the recent security breach on September 16th. This resulted in a loss of $5.98 million on the Deltaprime Blue (Arbitrum) protocol. DeltaPrime committed to fully compensate all affected users through a combination of strategic measures and community-focused initiatives.

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In response to the incident, DeltaPrime has implemented a comprehensive reimbursement strategy that prioritises user recovery and long-term protocol stability. Key components of the plan include:

  • rTKNs: All affected users will receive rTKNs to represent the dollars lost in the attack. Every rTKN represents $1 of future revenue to be received until full reimbursement is achieved.
  • Compensation: There will be a 40% compensation for those affected by the attack. This is represented in the receiving of 1.4 times the rTKNs for every dollar lost.
  • Stability Pool Allocation: The Stability Pool will contribute $1.33 million towards reimbursements, reducing the total impact to $4.65 million. This pool has been built through platform revenue and liquidation fees.
  • Founders' Contribution: In an unprecedented move, DeltaPrime's founders have committed 33% of their team allocation of PRIME for sale at a discounted rate to affected users. 100% of the dollars raised will be donated in an effort to make every affected user whole as fast as possible.
  • Incentives for Continued Participation: Users who maintain their savings within the protocol will benefit from accelerated reimbursement rates, receiving repayments twice as fast compared to those who withdraw entirely. This approach encourages sustained engagement, supports the protocol's recovery and growth and, in turn, leads to faster reimbursement for all affected parties.

The PRIME offered by the founders present a unique opportunity for affected users due to their heavily discounted price and non-inflationary mechanics. This initiative aligns with DeltaPrime's commitment to not lose sight of both sustainability and decentralisation in its pursuit to make users whole.

Why Full Repayment is Anticipated

DeltaPrime's confidence in achieving full repayment is grounded in its historical performance and robust financial health. Over its one-and-a-half years of operation, DeltaPrime has consistently demonstrated strong growth, with an average of $44 million in user deposits over 2024, and an average of $64 million over the 30 days prior to the atack. The protocol generated $2.7 million in revenue over 2024 (3.6 million annualised), showcasing its ability to generate substantial income even amid challenges within a sustained bear market. These financial metrics underpin DeltaPrime’s capability to fulfill its reimbursement commitments while continuing to innovate and expand.

Enhanced Security Measures

In light of the recent breach, DeltaPrime has redoubled its efforts to enhance both protocol and operational security. To reduce smart contract risk, the protocol currently is undergoing its 8th audit with renowned security provider BlockSec. Additionally, DeltaPrime has implemented rigorous operational security protocols, including comprehensive internal security workshops, a replacement of all physical devices through a reputable supply chain and enhanced monitoring systems for real-time threat detection. These measures are designed to safeguard user assets and rebuild trust within the community.

DeltaPrime remains dedicated to rebuilding trust with its community through transparent communication and decisive action. The protocol's ongoing security enhancements and strategic partnerships underscore its commitment to user fund safety and operational integrity.

Detailed information about the reimbursement plan is available on DeltaPrime and any questions can be asked directly by joining the conversation on Discord.