Our Response
Dear Warp Community, we understand this is not the update you are waiting for, but it is crucial for us to come forward to set the record straight. An individual professed to speak on behalf of our project and community and did not take the time to reach out for clarification prior to release. Thus, we were not given the privilege to comment on certain allegations made towards the history of our development, brand, and structure before it was publicly demonstrated and misrepresented to a considerable degree.
The Warp exploit of 2020 has not been hidden in our history, it had a significant impact on our community, development, and strategy. It is however not related to our current code as we had a complete re-launch of Warp that has not seen any exploitation. We are proud of what we have been able to accomplish since the exploit and are continuously working towards bringing our vision to life. We appreciate our community, especially the ones that have been around since the start and have continued to voice their support for our team. We have never in any way been involved in the exploits of our protocol and hope that the dedication we have shown in making our investors whole is a testament to our seriousness in the development and future of our protocol.
The Facts and Timeline:
This misrepresentation of our past is not being taken lightly and we are here to address any concerns that the community may have. This malicious attack against Warp and the team and individual involved post-exploit has been falsely presented and lacks proper research. We are posting here to clarify how we not only secured the protocol but were able to replenish a majority of the funds. The team and individual mentioned were not involved in the exploit nor were they involved in the audit pre-exploit. Advanced Blockchain, its portfolio company, and its collaborators have secured our protocol in the wake of the flash loan attack on the platform, helping us to relaunch Warp Finance. We have moved on to deploy a fully secure version of Warp and have exciting new features coming with the launch of V2. We question the intentions and integrity of the individual that launched this discourse against us but are open to clarify and communicate the truth, which was readily available online, with our community.
Development pre-exploit of Warp:
The initial Warp Finance code was developed by a third party blockchain development company on a contract basis. At the time, the leadership team of Warp made the decision to outsource the writing of the code in hopes that a professional agency could bring our vision to life faster than it would if we attempted to hire a team of developers.
Audit by Hacken: V1
“Hacken OÜ (Consultant) was contracted by Warp (Customer) to conduct a Smart Contract Code Review and Security Analysis. This report presents the findings of the security assessment of the Customer’s smart contract and its code review conducted between November 18th, 2020 — December 11th, 2020.” Full audit link here: https://hacken.io/wp-content/uploads/2020/12/Warp-SC-Audit-Report-16122020.pdf
Launch Phase 1- V1
On December 9th 18:00 UTC.The warp.finance platform smart contracts will open for deposits and withdrawals.
The Exploit:
On December 17th, 2020 the Warp Finance protocol experienced a flash loan exploit due to a gameable oracle that resulted in the user being able to withdraw a $7.76m loan.
Recovery:
On December 22nd, 2020 we successfully dispersed ETH/DAI-LP tokens to users worth $5.688m representing approximately 73% of funds.
Refund:
In order to compensate its users for any losses due to the previous flash loan Exploit on the platform, Warp Finance has distributed a new Portal IOU token. Overall, due to efforts of our team and the parties that helped us post-exploit, 5.68 million of the funds were recovered and the remaining funds were refunded.
Stela Labs audit
Stela Labs conducted an audit of the new code (post-exploit). There has since been no exploit of our protocol. Link to audit
With Warp V2 around the corner, we are finalizing an additional audit to further solidify the security of our code and protocol.
The future:
Warp is looking towards the future and we are extremely excited to launch Warp V2 to our community. We hope this clears any questions and concerns the community had after the misrepresentation of our past has been pushed with malicious intent. We encourage our community to reach out with any further questions regarding this situation and we are still on track to ship Warp v2 in March!
To follow Warp Finance as we carry out these new endeavours, check out our socials:
