Migration contract exploit — post mortem
Thank you, Fanadise community, for staying with us during the past 12 months. Thanks to your support and trust, we were able to bring innovation in the Web3 space, not only by selling Digital Love NFT, or the NFTs of 3D Scan of Doda, but also by creation of Fancy Bears and Trait Swap, some of the most prominent NFT projects on Ethereum blockchain.
Unfortunately, last night we faced an exploit of a migration contract. All of your FAN tokens are safe, however for now we had to pause the trading before we assess the situation in extenso. After we processed the removal of liquidity from the old contract, a group of exploiters was able to start moving tokens through the bridge, drain liquidity directly from the new FAN contract and dump 90% of the price in a matter of minutes.
After we realized that we’re under attack, we did what we thought was best:
a. we secured what was left of the liquidity
b. and the remainder of funds that we plan to use for the recovery plan
c. we stopped the trading on DEX, the same happened on Gate.io
d. we did a snapshot for a compensation plan
Now we need to wait the next 12 days before we finally close the bridge.
Go forward will include a plan for reimbursement and issuance of a new token related to all of our NFT activities. Fanadise as a project is not over, in the past 8 months we managed to sign 15 corporate deals for Web3 solutions with a number of global and local corporations. At the same time, our Dynamic NFTs Infrastructure Trait Swap is closely working with top high end brands to drive adoption of digital goods.
We want to compensate everyone for their losses. In the next chapter we will strive to bring the next 100 million people to Web3 and make the Fanadise community part of the process. We’re on the mission to create “the new internet”, where ownership of the digital assets would be the key to responsible growth. We can’t do it without you, we were always planning to make Fanadise a great company, and we won’t be leaving anyone behind.