Shortly after announcing its reinstatement plan following the security incident, EasyFi has announced its compensation plan, which will see EasyFi compensating 100% of the net balances of depositors and lenders.
After the attack on Easyfi’s contracts on Polygon and Ethereum, EasyFi is working with various teams to gain insights on the breach. At the same time, the protocol has announced a carefully planned compensation plan that would aim to satisfy all stakeholders and users involved. In addition, EasyFi shared the compensation planned with its community for feedback and suggestions.
New Strategic Investors
EasyFi has started raising funds during their multi-chain expansion but accelerated the funding after the security breach. As a result, the protocol has already raised a significant amount of funds, which will help EasyFi expand infrastructure and introduce new products.
The Compensation Plan
EasyFi has also announced a compensation plan after a thorough analysis of the effect the breach has had on users, with the platform collecting the necessary data for the purpose of compensation.
Compensating 100% Of User Funds
EasyFi will compensate 100% of user funds that were deposited in protocol contracts on Polygon. The protocol will be taking into consideration the net balances of each address as per the snapshot at block #13464478 on Polygon’s network.
Lenders will receive their deposits in two parts as per their compensation. First, they will receive 25% of the total amount deposited in stablecoins with immediate effect. Second, the remaining compensation will be distributed as follows.
The EZ IOUs
EasyFi will pay the remaining 75% of the amount to be compensated in EX (IOUs). EASY V2 tokens will back these in a ratio of 1:1
Some important points to consider:
- The EZ IOUs will have a 25% discount on the actual price of EZ in secondary markets.
- The IOUs will be redeemable in a 1:1 ratio against the EASY V2 token EZ. This will be made possible by utilizing a dedicated dashboard. 1 EZ (IOU) will always be equal to 1 EZ.
- The EZ IOUs will be distributed immediately to users for their equivalent amount to be compensated. However, they will be redeemable over six months against EASY V2 tokens.
- All redeemable tokens will be unlocked proportionately on the Polygon network. These can be claimed by users whenever they find it convenient.
- Since the EZ IOU tokens are ERC-20 tokens, they are easily tradable over decentralized and centralized exchanges.
Volatile Asset Compensation
Users that have deposited volatile assets in EasyFi’s lending markets on Polygon shall be compensated according to the prevailing price of the asset during the time of distribution.
Advantages For EZ IOU Holders
EZ IOU holders will have several advantages. Some of which are,
- A 25% discount on the spot price
- 100% backing from vested EZ tokens in a ratio of 1:1
- Since they are ERC-20 tokens, they are tradable and transferable.
- They are immediately redeemable.
- Incentivization programs
- Surprise token airdrops from partner projects
- IOU holders to get preference EasyFi access programs.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.