Radiant Capital initiated the RFP-27 proposal, seeking consensus from Radiant DAO stakeholders on the strategy and timeline for capital restructuring and repayment of excess debt in the WETH market after the January 2nd vulnerability in the Arbitrum lending market. The options are as follows:

On Jan-03–2024 UTC+8:00, the Radiant protocol on Arbitrum was under the flashloan attack. The hacker attacked the #Radiant protocol 3 times, resulting in a total loss of 1.9K $ETH(worth $4.5m). The root cause is the mathematical rounding issue in the `burn` function that is amplified and used, on a new $USDC market, which makes the hacker withdraw an extra $USDC. MetaTrust Labs conducted in-depth research and analysis on the exploit, revealing how the hacker exploits vulnerability.

According to a post by Radiant Capital on X, there have been reports of issues with the newly created native USDC market on Arbitrum. After verification by Radiant developers and the wider Web 3 security community, the Radiant DAO committee has temporarily suspended the lending market on Arbitrum.No action can be taken until the market on Arbitrum is released from suspension. Once the issue is fully resolved, a detailed post-mortem analysis will be released and the Arbitrum protocol will resume normal operation.

Multi-chain lending protocol Radiant Capital announced on X platform that it will airdrop 2 million ARB tokens. Radiant's STIP incentive proposal has been approved by Arbitrum DAO and is now live. dLPs that meet the airdrop requirements must lock up on Arbitrum and BNB Chain for 6-12 months between the first snapshot (block 147753665) and the second snapshot (within the next 30-90 days) to be eligible to receive a share of the 2 million ARB tokens. The application period will end on January 31, 2024, and new dLPs such as Magpie and PlutusDAO will be allocated at their discretion.