Perpetual Protocol v1 economic design failure (12–15/05/2022)
Details of this event are included below.
A total of 100 ETH and 199,999 DAI was paid out for Claim 118 and Claim 119. Other claims may still be submitted and approved for this loss event.
After this exploit occurred, Claims Assessors discussed this loss event in the mutual's Discord server. Because Nexus Mutual is a discretionary mutual, members participate in the Claims Assessment process and review the validity of claims submitted after a loss event occurs.
Section 1.2 is the Economic Design Failure provision, which covers events like this one
To date, two (2) claims have been filed and voted on by Claims Assessors. As stated in the section above, Claims Assessors had determined this was a covered event. Once it has been determined that an event is covered, Claims Assessors review the validity of claims to determine:
- Did the Cover Holder have active cover at the time of the exploit?
- Did the Cover Holder provide Proof of Loss?
- Did the Cover Holder lose 20% or more of the covered amount?
Claims Assessors reviewed and approved Claim 118 and Claim 119. The claims included proof of loss, which showed the affected addresses where the Cover Holders suffered a loss of 20% or greater. You can review the transactions related to these claims in the Nexus Mutual user interface in the Claims section.