CREAM Price Crashes as Team Announces Distribution of 1,453,415 Tokens to the Victims of the 3rd Hack of the Year
However, the total value locked in the DeFi protocol jumped to $2.28 billion, from $1.42 billion ten days back.
The price of crypto-asset CREAM has tanked more than 44% ever since C.R.E.A.M. Finance announced the distribution of just over 1.45 million CREAM tokens to the users affected in the V1 Ethereum markets exploit.
About three weeks back, Cream Finance had its third hack of the year at block number #13499798, in which it lost at least $130 million.
$9.42 million of it was salvaged by the Yearn Finance at the time, while the Cream Finance team announced a bug bounty of 10% of the funds to the attacker in exchange for the return of users’ funds.
Over the weekend, the team announced the path forward, as per which 1,453,415 CREAM tokens will be distributed to impacted users. Impacted users can claim their CREAM tokens from https://app.cream.finance/claim.
Since the announcement, the CREAM token has lost its value significantly. As of writing, the $37.5 million cryptocurrency is trading at $49.20, down 87% from its all-time high in early February.
However, the total value locked in the DeFi protocol jumped to $2.28 billion, from $1.42 billion ten days back, as per DeFi Llama.
Dear C.R.E.A.M. Community and Partners,
We appreciate your support as we work through the next steps for C.R.E.A.M. Finance and what this means for everyone. We explored every option that was available to us before arriving at the conclusion that this is the best path forward.
— Cream Finance 🍦 (@CreamdotFinance) November 13, 2021
Those who successfully made their insurance claims with Nexus Mutual or Bridge Mutual will not be eligible to claim these tokens unless not covered 100% by insurance.
The allocation of CREAM tokens for each account is based on their net position when the v1 markets were frozen.
“We are utilizing remaining CREAM tokens within the treasury, and removing the project team’s remaining CREAM token allocation. There will be no further CREAM allocations to the team.”
After the attack, the token listing strategy of the protocol has been tightened to no longer include long-tail assets or tokens that can be wrapped/unwrapped. To Increase security, Collateral Cap limits are also deployed across all markets.
In its announcement, the CREAM finance team also said that they will now focus on its Iron Bank by expanding protocol-to-protocol loan offering and leaning further into synthetic assets.