Welcome to the 13th edition of the Techemynt fortnightly newsletter. It has been an exciting, encouraging start to the new year for the Techemynt and New Zealand Dollar Stablecoin teams.
The Techemynt team has begun the first steps to recover the NZDS stranded on Polygon following the exploit of smart contracts on the DFX protocol on November 10th, 2022. The recovery plan will compensate NZDS pool Liquidity Providers affected by the exploit pro-rata.
NZDS holders who provided liquidity to the Ethereum-based NZDS/USDC pool suffered losses. 25% of the funds stolen from the pool remain stuck on Polygon because liquidity issues inhibited the hacker from liquidating into ETH to route through Tornado Cash. NZDS totaling ~820K remain idle in the hacker’s wallet there.
The first step of the plan to recover funds is blacklisting the Polygon-to-Ethereum NZDS bridge. The team is working on a plan that will involve full recovery of the outstanding NZDS on Polygon totaling ~820K and full repatriation to affected LPs pro-rata.
While we finalize the best way to achieve this, and to avoid complications and inconvenience, we strongly advise users who have NZDS on the Polygon to bridge back to Ethereum as soon as possible.
We are allocating a 7-day grace period starting today (24th January 2023) to allow NZDS-based Polygon users to withdraw funds from the chain. After this time Techemynt will blacklist the Polygon bridge, putting it out of commission. Polygon-based NZDS holders who do not remove funds from the Polygon chain within this period will likely experience further delays and inconvenience, as each account will have to be manually administered.