Warp Finance – among the most recent (DeFi) protocols to undergo a smart contract attack – reportedly disclosed details of potential development for recompensating users after a $8 million flash loan attack.

Specifically, the DeFi protocol, which provides support for stablecoin loans feature across liquidity pool token collateral, reportedly suffered a financial damage equivalent to $7.7 million in USDC and DAI, when a hacker employed flash loans to generate liquidity pool tokens, manipulate Warp’s price oracles, and drain Warp’s stablecoin coffers.

After the attack occurred, a team of whitehack hackers have reportedly come together to help the protocol with damage assessment, as well as coming up with a fix patch for the attack, and particularly for this incident, to partially compensate for the financial damage caused. 

As disclosed via a post dubbed “Exploit Summary & Recovery of Funds”, the Warp team reportedly noted that liquidation for the attacker’s loan because of the manipulated oracle cannot be carried out, but the whitehat team’s assistance helped it take back the liquidity pool token loan collateral.

“The loan collateral has since been secured by the warp finance team and will allow us to return approximately 75% of users’ deposited funds, thanks to support from the Ethereum and white hat community,” The team reportedly remarked. 

The post reportedly shared that the funds will be distributed to clients suffering from the attack, as well as invited users to separately confirm that the snapshot they took of addresses is correct.

“While we are relieved that lost funds have been partially recovered, we see this only as a first step to making Warp Finance users whole. For this reason we will issue Portal IOU tokens to every affected user. The end goal of the IOU token is to fully refund users, and potentially even give them a profit on what they initially deposited.” The team further remarked.