TechFlow news, September 15 — According to Theblock, Nemo Protocol has announced a compensation plan to distribute debt tokens named NEOM to affected users.
The platform suffered a vulnerability attack resulting in a loss of $2.6 million earlier this month. On September 7, an attacker exploited a flaw introduced by developers in the code, which had been deployed without proper auditing, leading to stolen funds from the platform's market pools.
According to a blog post published by Nemo, the compensation plan will issue NEOM tokens equivalent to users' losses calculated in USD, based on an on-chain snapshot taken at the time the protocol was suspended. Holders can choose to exit via automated market maker pools or hold the tokens and wait for fund recovery.
Nemo stated it will implement a three-step recovery plan: first, allowing users to migrate remaining value from compromised pools into new audited multi-sig contracts; second, launching a NEOM/USDC liquidity pool on major Sui decentralized exchanges; and finally, depositing any recovered funds into a multi-sig redemption pool for proportional claims by NEOM holders.
