- Onyx bounces back with robust plans after a crippling $3.8 million hack.
- Community votes unanimously to support the relaunch of Onyx Core on October 1.
- Measures include shutting down Ethereum-based lending markets and full reimbursement of lenders.
Discover how Onyx plans to revamp its DeFi protocol post-hack with innovative governance and enhanced security measures.
Onyx Plans Major Relaunch Post $3.8 Million Hack
In a significant move aimed at restoring faith in its platform, Onyx intends to relaunch its governance-focused financial network following a substantial $3.8 million security breach. The exploit, which occurred on September 27, took advantage of a known, yet unpatched, vulnerability within the protocol.
Community’s Swift and Decisive Response
Immediately following the breach, the Onyx Improvement Proposal (OIP-46) was tabled. This proposal, set forth on the same day of the hack, included substantial changes to the protocol. Noteworthy among these changes was the cessation of its Ethereum-based lending market and the commitment to reimburse lenders entirely at a 1:1 ratio for the assets provided. By September 29, community voting had unanimously endorsed the proposal, highlighting the strong communal support for the platform’s resilience and direction.
Strategic Focus on Security and Governance
The planned relaunch of Onyx Core, which includes substantial modifications, marks a pivotal moment for the protocol. The revised white paper intended for the relaunch outlines new business practices and security enhancements. The Onyx team’s forward-looking approach includes leveraging Onyxcore as the central product and introducing staking features for Onyxcoin (XCN).
Enhanced Lending Protocol Safeguards
One of the significant changes introduced is the shift of the Onyx Protocol to a closed-ended lending setup. This new structure will incorporate real-world assets (RWA), non-fungible tokens (NFTs), and other cryptocurrency assets, aiming to offer more secure and diversified lending options for users. This measure hopes to prevent future breaches like the one that allowed a hacker to exploit the NFTLiquidation contract earlier. The vulnerability, which had also impacted Hundred Finance back in April 2023, is now a priority fix in Onyx’s restructured framework.
Wider Implications for DeFi Security
According to data from blockchain security experts at PeckShield, and corroborated by Web3 security firm Cyvers, the need for robust security protocols in decentralized finance (DeFi) cannot be overstated. The first three quarters of 2024 alone saw over $2.1 billion lost to crypto-related hacks, with centralized exchanges being the most frequent targets. Despite a 25% drop in DeFi sector losses within Q2 2024, the space still witnessed significant financial drain amounting to $171.3 million across 62 incidents.
Conclusion
Onyx’s rapid and comprehensive response to the recent hack underscores the importance of community collaboration and robust security measures in the DeFi sector. The upcoming relaunch of Onyx Core, backed by meticulous planning and community endorsement, aims to set a new benchmark for governance and security in decentralized finance. It remains to be seen how these strategic changes will fortify Onyx against future vulnerabilities, but the proactive steps taken by the team are a promising sign of resilience and innovation.
