Onyx receives the greenlight to relaunch Onyx Core after a $3.8M hack

The Onyx Protocol received the green light to launch Onyx Core after proposal OIP-46: Relaunch Onyx Core passed with a 100% upvote rate.

A few days ago Onyx Protocol was hacked and lost $3.8 million. Right after the hack, Onyx posted on X saying that the DAO will decide the next steps for the protocol with a new proposal. 

The proposal titled OIP-46: Relaunch Onyx Core includes details about shutting down the Ethereum-based lending market and reimbursing affected users in full with 1:1 payment. 

Additionally, the proposal includes the relaunch of Onyx Core, an open-source permissioned financial network. Onyx Core will be the primary product alongside XCN Staking. Both will secure the network governance and Onyx stakers.

The proposal was created and went live on-chain on September 27. In less than two days, OIP-46 succeeded and received a 100% voting rate, and no community member was against it. Proposal OIP-46 will begin the execution stage in 16 hours from the time of this writing. 

Onyx to improve borrowing and lending.

The Onyx protocol will operate as a closed-ended lending protocol on top of Onyx Core. Users will have the option to wrap different types of assets, such as non-fungible tokens (NFTs), Real-World Assets (RWA), and other cryptocurrencies. Then, users will be able to borrow against their wrapped assets through a global network.

As promised in the proposal, the Onyx Protocol team issued a revised white paper after the community voted on launching Onyx Core. The paper discusses major elements of the protocol such as security, consensus and scalability.  

In an attempt to recoup the lost fund, Onyx is offering a 20% bounty. In addition, the protocol is open to giving the bounty to the hacker if he returns 80% of the stolen funds. The Onyx community sent two on-chain messages to the hacker, offering him the bounty. 

Onyx was hacked before 

The recent hack isn’t the first one in the protocol’s history. In 2023, Onyx suffered a hack due to a known vulnerability in the protocol and siphoned $2.1 million. The recent hack resulted in a loss of $3.8 million and was also due to a known vulnerability. Both hacks were preventable. 

Onyx Protocol is a fork of Compound Finance V2. This means the code is copied from Compound V2 since it’s open-source without securing or fixing it. Other protocols, such as Hundred Finance and Midas Capital, are also forks of Compound V2 and suffered from exploitation.