The decentralized lending protocol zkLend has announced a comprehensive plan to compensate users affected by its recent hack. Under this program, the company intends to reimburse losses using internal reserves and special NFT assets that secure the right to compensation. Details follow.
How Compensation Will Be Provided
According to the statement, the zkLend team has developed a distribution system that considers the state of users’ deposits at the time of the attack. To cover the losses, $400K will be allocated from the protocol’s revenues and treasury accounts, reducing the overall deficit to $9.01M.
The recovery fund will be sourced from several channels:
- Partial reallocation of liquidity between pools where full loss coverage is possible.
- Issuance of special Recovery NFTs that guarantee users the right to compensation for any remaining funds.
- Revenues from future zkLend operations, including rewards and rebates.
- The potential return of stolen funds if they can be traced.
How the Recovery NFTs Will Work
These NFTs will be issued to users with outstanding deposits, representing their share in the recovery fund. As additional assets are recovered, the funds in this pool will be distributed among NFT holders.
Compensation will depend on the type of pool:
- Unaffected pools will receive 100% reimbursement from available liquidity.
- Affected pools will get partial compensation, with the remaining balance being covered through Recovery NFTs.
Over the next two weeks, zkLend will launch a Recovery Claim Portal where users can check their compensation balances and submit claims.
The zkLend Hack
Recall that the incident occurred on February 12, 2025, on the Starknet network, during which hackers withdrew $4.9M. Some of the funds were sent to Ethereum and attempted to be concealed using Railgun, but due to protocol safeguards, part of the assets returned to the original address.
The hackers were immediately offered a deal: keep 10% of the amount and receive exemption from potential legal consequences in exchange for returning the rest — but no response was received. The team is now working with law enforcement and blockchain analytics firms to track and prosecute the perpetrators.
The company emphasized that the measures taken will not only compensate for the losses but also enhance the protocol’s security going forward.
For the complete compensation plan, please see the link.
See Also:
- Abstract Investigates $400K Leak. Is the Network Safe Now?
- FBI Warns of Increasing AI-Driven Phishing Attacks on Gmail — How to Protect Yourself
- Xeggex Exchange Freezes User Accounts After Hacker Attack – Are Clients' Funds at Risk?
- Hackers Breach Visa Account to Promote Scam Coin
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.