GMX Releases $40 Million Attack Summary Report: Will Discuss Compensation Measures, V2 Unaffected

$GMX posted on the X platform a summary report on the reasons for the approximately $40.00 million attack on $GMX V1 on the Arbitrum chain on July 9 and subsequent measures. It pointed out that, according to the security team's analysis, the attack originated from the re-entry vulnerability of the OrderBook contract. The hacker used the vulnerability to manipulate the average price of BTC shorts, thereby significantly increasing the GLP price and arbitraging. The official has suspended related transactions on the Avalanche chain, confirmed that the V2 version is not affected, and will take measures such as disabling GLP minting and redemption and establishing a compensation pool. $GMX reminds V1 fork projects to fix similar risks in time.
Next steps for planned funds: Approximately $3.60 million remaining in the GLP pool, reserved for open positions. Approximately $500,000.00 in GLP fees for V1 on Arbitrum this week (after deducting 30% allocated to $GMX stakers) will be transferred to the DAO treasury for compensation. GLP minting and redemption on Arbitrum will be disabled (redemption disabling will wait for a 24-hour Timelock). GLP minting on Avalanche will be disabled, but redemption functionality will be retained. Enable V1 position closing on Arbitrum and Avalanche, and disable opening to prevent recurrence of the vulnerability. Cancel V1 orders on Arbitrum and Avalanche. The remaining GLP funds on Arbitrum will be allocated to the compensation pool for use by affected GLP holders.
The $GMX DAO will discuss further compensation measures. It is recommended that all $GMX V1 forks take immediate measures and enable trading and minting of GLP-like tokens after repair and auditing. [Odaily Planet Daily]