The team behind the Raydium decentralized exchange (DEX) has announced details as to how the hack of Dec. 16 occurred and offered a proposal to compensate victims.

According to an official forum post from the team, the hacker was able to make off with over $2 million in crypto loot by exploiting a vulnerability in the DEX’s smart contracts that allowed entire liquidity pools to be withdrawn by admins, despite existing protections being to prevent such behavior. 

The team will use its own unlocked tokens to compensate victims who lost Raydium tokens, also known as RAY. However, the developer does not have the stablecoin and other non-RAY tokens to compensate victims, so it is asking for a vote from RAY holders to use the decentralized autonomous organization (DAO) treasury to buy the missing tokens to repay those affected by the exploit.

(by Tom Blackstone)