GMX finalizes $44 million plan to compensate GLP holders affected by recent hack

The Block

Decentralized perpetuals exchange GMX announced Wednesday that users affected by last month's security exploit can now claim their distributions on the dApp.

"About $44 million in value is being distributed, making all impacted Arbitrum GLP holders whole and marking a favorable resolution to the security challenge GMX faced," the announcement said.

This amount includes the recovered GLP funds and $2 million worth of complementary funds from its treasury.

On July 9, GMX V1's GLP pool on Arbitrum experienced an exploit that led to losses of $42 million, caused by a vulnerability in the initial version of the protocol. According to CertiK, the vulnerability was a reentrancy issue that allowed the attacker to manipulate the protocol's AUM calculation and withdraw more funds than they had initially deposited.

Within hours, GMX sent an on-chain message to the attacker's wallet, offering a 10% white-hat bounty for returning 90% of the stolen funds, which the hacker accepted.

The latest distribution will be issued in GLV token, which is an upgraded liquidity vault product for GMX V2.

Those eligible for claims will receive two kinds of GLV tokens in equal proportions, GLV [BTC-USDC] and GLV [WETH-USDC], equating to approximately 25% WBTC, 25% ETH, and 50% stablecoins, mirroring the asset exposure of the original GLP token.

Outside the claims, the perpetual exchange is also distributing a $500,000 GLV incentive pool to users who keep their allocated GLV.

"If you hold your distributed GLV for at least 3 months without selling or transferring, you'll receive a pro-rata share," GMX said.

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GMX finalizes $44 million plan to compensate GLP holders affected by recent hack

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