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zkLend Allocates $400,000 for Victims of Cyber Attack

By ToTo BugelmanNewcomer0 rep· 2/21/2025

In a significant move to support users affected by a recent cyber attack, zkLend, a Layer 2 protocol based on Starknet, has announced a compensation plan totaling $400,000. This initiative aims to reimburse users for their lost deposits following a security breach that impacted multiple liquidity pools.

 

Compensation Plan Details

Affected Liquidity Pools: The incident impacted four liquidity pools:

  • ETH: 7,06%;
  • USDC: 4,08%;
  • USDT: 23,57%;
  • STRK: 30,65%.

The compensation plan is structured to ensure that users receive the maximum possible reimbursement based on their individual circumstances. The following outlines the key components of the plan:

  • Compensation Structure: Users will receive compensation based on their net deposit value (NDV), which is calculated as the total assets minus borrowed funds. This ensures a fair distribution of the available compensation funds.
  • Example Calculation: For instance, if a user deposited 1 ETH and 1,000 USDC while borrowing 300 USDT, with ETH priced at $2,000 at the time of the attack, their NDV would be $2,700. This value will be used to determine their share of the compensation.

 

Recovery NFTs

In addition to direct compensation, zkLend plans to issue approximately 82,818 Recovery NFTs. These tokens will serve as a long-term financial guarantee for affected users, securing their claims on any future recovery of funds through project revenues or the return of stolen assets.

 

Next Steps

The zkLend team is currently developing a recovery portal, which is expected to launch within the next two weeks. This portal will provide users with information on the compensation amounts and the steps they need to take to claim their refunds. Direct payments will commence following an audit of the contracts, anticipated to take around two weeks.

 

Conclusion

zkLend's commitment to compensating users affected by the cyber attack reflects a growing trend in the cryptocurrency industry to prioritize user security and trust. As the situation develops, the community will be watching closely to see how effectively zkLend can implement its compensation plan and restore confidence among its users.

 

Sources

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zkLend Allocates $400,000 for Victims of Cyber Attack | BlockzHub