TechFlow reports that DeFi protocol Onyx DAO has decided to activate its $40 million XCN token facility, jointly held with institutions including LDA Capital, to ensure affected users receive proper compensation—particularly following a security incident resulting in approximately $2.1 million in losses. Onyx DAO will sell XCN tokens from the DAO treasury through this facility to directly offset losses incurred by Onyx Protocol due to the attack, ensuring affected users receive appropriate funds.
Although Onyx DAO previously favored alternative approaches over utilizing the $40 million XCN token facility, it has now opted for this measure under current circumstances to best protect affected users' interests and will expedite the activation process. Onyx Protocol will execute this proposal to ensure compensation is delivered to impacted users.
In addition, Onyx stated it will collaborate with security experts and the community to implement stricter security practices in future market deployments. Until improved protocols are established, all developer and DAO salaries will be suspended indefinitely.
