According to BlockBeats, on June 28, Velocore stated on social platforms that in order to prevent further losses, most of Velocore's functions were disabled, leaving only the withdrawal function. Since the front-end exchange could not correct the imbalance of the stable pool and the de-anchored pool through arbitrage, it caused additional losses to LP. On the Linea chain, since the administrator rights of the Diamond Proxy contract have been revoked, we can only change the exchange rate to zero, and cannot make fundamental updates.

This requires us to prevent further potential damage and provide a unified withdrawal method for all users. After re-examining the contract, we found another vulnerability that could lead to the theft of all assets. To mitigate this risk, we performed a white hat operation to securely deposit the assets into a separate Safe vault. Affected LPs can now claim their funds based on the LP snapshot of the relevant block.

The Telos chain was not attacked and was patched without waiting for a timelock. Assets will be returned 1:1 to their owners, independent of overall LP compensation. Work is ongoing to accurately take snapshots and update the claims function accordingly. Regarding compensation for LP victims of the previous vulnerability attack, a community vote will be held to decide whether to restart or liquidate. All remaining assets will be consolidated into a single vault for collective decision-making.