Nemo Protocol launches debt token program to fund $2.6 million vulnerability victims

PANews reported on September 15 that according to The Block, recently, after Sui-based income trading platform Nemo Protocol was exploited, it launched a debt token compensation plan, with the core being the issuance of NEOM tokens equivalent to user US dollar losses. Nemo said that although he wanted to compensate directly with US dollars, he lacked funds, so he adopted a debt token strategy. The goal is to ultimately make up for the user's principal loss, based on the on-chain snapshot when the agreement is suspended. The agreement formulates a three-step recovery plan: first, allow users to access a dedicated portal, and move the residual value of the damaged fund pool to a new contract, and the user receives equivalent NEOM tokens during the migration; token holders can choose to exit through the automatic market maker fund pool, or retain tokens and other funds to recover. Nemo also plans to launch a liquidity pool in Sui's main DEX to help users exit, and will deposit the recovered funds in full into the redemption pool for application, and some external funds will also be allocated to the pool for support. Previously, on September 7, according to Paidun's first disclosure, the Nemo Protocol fund pool was stolen by attackers. The attacker exploited a vulnerability in the developer's code that was deployed without proper audit.