It is with deepest regret that we must announce that on Saturday July 10th 2021 at 20:47 UTC, the ChainSwap protocol experienced a vulnerability exploit that impacted $ASAP tokens on both the Ethereum and Binance Smart Chain networks. Hackers were able to drain tokens from the minter as well as from the Bridge Contract. Trading of the $ASAP token on centralized and decentralized exchanges was largely impacted.
ChainSwap team apologizes for this situation that undoubtedly impacts our users and supporters. We would like to ensure our community that actions have been taken to mitigate losses and ensure security in the future.
Action taken
- Immediately after the hack was detected, we announced the issuance of a new token to replace the compromised $ASAP token, based on a snapshot from wallets and on exchanges.
2. We informed the liquidity providers and withdrew liquidity from Uniswap which saved the LP fund.
3. Chainswap freezed the mapping token on Binance Smart Chain and forced burning of the hacked $ASAP in the hacker’s wallet.
Snapshot and airdrop
Because the Chainswap governance token was issued through the Chainswap factory contract, we needed to issue a new token to detach from the bridge. The snapshot is taken at the block height 12801461 (Time stamp: (Jul-10–2021 07:16:11 PM +UTC)) . This means that $ASAP holders will be airdropped the exact amount of tokens held prior to the exploit.
All Impacted $ASAP holdings on Binance Smart Chain and Huobi Eco Chain will be airdropped on the Ethereum network.This will ensure full compensation for holders of non-Ethereum $ASAP. $ASAP holders will be airdropped and a time window will be announced. We will provide liquidity on Uniswap right before the start of the airdrop and trading on Uniswap.
The exact dates of the airdrop are to be announced.
Compensation
We spent 717,220 $ASAP tokens to compensate affected projects, in addition to stablecoin compensation from the team fund. The compensated tokens will be distributed to affected projects on a daily basis, starting on the issuance date of the new token. We minimized compensation in $ASAP tokens, to protect the value for original token holders.
Improvement actions
Although the Chainswap team treasury is affected by the compensation plan, we will keep building and follow our original roadmap. We are currently working on Chainswap V2 and Chainswap Hub, which are our first priorities after successfully completing the compensation plan and improvements for increased safety of the protocol.
The following improvements have been set into motion:
- The Chainswap bridge is halted and we are coordinating with various auditing firms to conduct a deep audit.
- We have added increased security measures to our development production line. For future releases, we will conduct improved internal code testing, community bug bounty programs and third party auditing by reputed smart contract auditing firms.
- The new and improved bridge will be released with Chainswap V2.
- The team has decided to take a longer lock-up for the foundation and the team tokens and the lock up is extended to two more years.
