Velocore: Discovered another vulnerability and took white hat action, affected LPs can claim funds based on the snapshot

ChainCatcher message, Velocore stated on X that after the recent exploitation incident, most of Velocore's functionalities have been disabled to prevent further losses, leaving only the withdrawal function. The front-end exchange was unable to correct the imbalance and de-pegging of the stable pool through arbitrage, resulting in additional losses for LPs.

On the Linea chain, since the admin privileges of the Diamond Proxy contract have been revoked, we can only change the exchange rate to zero and cannot make fundamental updates. This requires us to prevent further potential damage and provide a unified withdrawal method for all users. Upon re-examining the contract, we discovered another vulnerability that could lead to the theft of all assets. To mitigate this risk, we conducted a white-hat operation and securely deposited the assets into a separate Safe vault. Affected LPs can now claim funds based on the LP snapshots of the relevant blocks.

The Telos chain was not attacked and was patched without waiting for a time lock. Assets will be returned 1:1 to their owners, unrelated to the overall LP compensation. Efforts are underway to accurately capture snapshots and update the claims functionality accordingly. Regarding compensation for LP victims from the previous exploitation, it will be decided by community vote whether to restart or liquidate. All remaining assets will be consolidated into a single vault for collective decision-making.