New test of DeFi: Can trust be repaid with code?

The Nemo Agreement announced a compensation program for users affected by recent security breaches, funded from internal reserves and community donations. The program consists of multiple stages, including claim verification and transparent refunds, with specific details already outlined in the published white paper. This vulnerability is related to a third-party smart contract vulnerability and has been fixed and audited. Although the protocol’s positive response has been praised, some users have also questioned its financial sustainability. This incident highlights the DeFi industry's increasing emphasis on user protection and crisis management.