HomeNEWSHelio addresses community after $15m exploit, assures re-pegging of $Hay

Helio addresses community after $15m exploit, assures re-pegging of $Hay

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In a recent update on its Twitter page, Helio protocol revealed that it has commenced the first batch of its buyback program for it’s native destablecoin $HAY. In the update, the protocol said the attempt to push the token to its 1:1 dollar ratio is taking much more time than expected.

Further, Helio promised to share more relevant information with community members once it completes its recovery plan. The protocol said sharing information about its recovery plan at the moment might expose the platform to another possible exploit. Also, the firm said it’s in regular contact with relevant partners and it’s taking a careful approach which has slowed the recovery plan.

In the update, Helio said it’s better the firm takes a careful approach than to take a fast and reckless one that might cause more issues in the future. Lastly, the firm said it’s committed to re-pegging it’s destablecoin and it’s willing to do everything within its capacity to resolve the issue.

Helio’s $HAY is a new form of asset class referred to as destablecoin. Destablecoin is a new type of asset class in the industry that attempts to label a more authentic term in the existing stablecoin sector. Destablecoins uses decentralized crypto assets only as collateral. It doesn’t aim to attain full price stability with fiats. While destablecoins are not fully volatile assets, it’s vulnerable to price instability like fiats would experience due to changes in interest rates and other factors

Why Helio is launching a re-peg program

Recall that last Friday, BNB chain-based staking outlet, Helio suffered exploitation. As revealed, a group of hackers stole $15 million in liquidity from the platform. According to on-chain data, the hackers exploited an oracle issue on the protocol.

Similarly, before the attack on Helio, a hacker also stole about 5 million USDC from Ankr. The hacker of Ankr minted 6 quadrillion aBNBc tokens causing it to plunge by 99%. The attack on Ankr formed the base for the exploitation of Helio, however, it’s unknown if there is a connection between hackers of the two platforms.

Shortly after the attack, Helio revealed that it will be working with Ankr to help re-reg $Hay. The team said that Ankr will buy as much as the excess of $Hay minted from the aBNBc. After that, the firm will burn the tokens. Then, the team said the process will take place within 24 hours.

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