Veritas Protocol: DeltaPrime Unveils Comprehensive Reimbursement Plan Following Security Breach

DeltaPrime, a prominent player in the decentralized finance (DeFi) sector, has announced a comprehensive reimbursement plan aimed at compensating users affected by a significant security breach that occurred on September 16th. The breach resulted in a loss of approximately $5.98 million on the DeltaPrime Blue (Arbitrum) protocol. The company is committed to restoring user trust and ensuring long-term stability through a series of strategic initiatives.

Key Takeaways

DeltaPrime will issue Reimbursement Tokens (rTKNs) to affected users, representing $1 of future revenue.
Users will receive 1.4 times their losses in rTKNs.
A Stability Pool will contribute $1.33 million towards reimbursements.
Founders will sell 33% of their PRIME tokens at a discount to raise funds for compensation.
Users who keep their funds in the protocol will receive faster reimbursements.

Overview Of The Reimbursement Plan

In response to the breach, DeltaPrime has rolled out a multi-faceted reimbursement strategy that emphasizes user recovery and the long-term stability of the protocol. The key components of this plan include:

Reimbursement Tokens (rTKNs): Affected users will receive rTKNs, which represent $1 of future revenue until full reimbursement is achieved. These tokens are fungible and can be exchanged for their dollar equivalent as DeltaPrime generates revenue.
Compensation Structure: The rTKNs distributed to users will equate to 1.4 times their losses incurred during the attack, ensuring that users are compensated beyond their initial losses.
Stability Pool Allocation: A total of $1.33 million will be allocated from the Stability Pool to assist with reimbursements, effectively reducing the total financial impact to $4.65 million. This pool has been built through platform revenue and liquidation fees.
Founders' Contribution: In a notable move, DeltaPrime's founders have pledged 33% of their team allocation of PRIME tokens for sale at a discounted rate to affected users. All proceeds from this sale will be directed towards compensating users as quickly as possible.
Incentives for Continued Participation: Users who retain their funds within the protocol will benefit from accelerated reimbursement rates, receiving repayments at double the speed compared to those who withdraw entirely. This strategy aims to encourage ongoing engagement and support the protocol's recovery and growth.

Financial Health And Future Prospects

DeltaPrime's confidence in achieving full repayment is bolstered by its strong historical performance and financial health. Over the past year and a half, the protocol has consistently demonstrated robust growth, with an average of $44 million in user deposits throughout 2024 and $64 million in the month leading up to the breach. The protocol generated $2.7 million in revenue in 2024, showcasing its ability to maintain substantial income even during challenging market conditions.

Enhanced Security Measures

In light of the recent breach, DeltaPrime has intensified its focus on enhancing both protocol and operational security. The protocol is currently undergoing its eighth audit with the renowned security provider BlockSec to mitigate smart contract risks. Additionally, DeltaPrime has implemented rigorous operational security protocols, including:

Comprehensive internal security workshops.
Replacement of all physical devices through a reputable supply chain.
Enhanced monitoring systems for real-time threat detection.

These measures are designed to safeguard user assets and rebuild trust within the community.

DeltaPrime remains committed to transparent communication and decisive action as it works to restore confidence among its users. The ongoing security enhancements and strategic partnerships further underscore its dedication to user fund safety and operational integrity.