The first stage consists of a “pro rata redemption package” that will allow Cypher Protocol users to withdraw some of their assets still available on the platform.
Naturally, a socialization of losses among the people responsible for the poor security that allowed the hack to be carried out in the first place was not proposed.across various CEXs – probably Binance and KuCoin, since the attacker transferred his ill-begotten gains to accounts on these platforms. These funds, along with the rest of the funds still on the platform, will be transferred to users in preparation for the second stage consisting of an IDO.
As soon as the audit is completed, Cypher Protocol intends to launch an Initial DEX Offering in a bid to raise funds that would allow the platform to recover. At this stage, Cypher will mint and50 million debt tokens to its users. If Cypher recovers, these tokens would allow the community to withdraw the future DEX’s profits in USDC.
Unfortunately, there is no guarantee that investors will prove interested in funding a platform that was already destroyed by poor security measures. If the funding round falls flat, there is no guarantee that prior investors will be able to recoup their losses.