ParaSpace: A phased restart protocol will be implemented to provide affected users with NFT compensation redeemable for future ParaSpace tokens

ChainCatcher news, the NFT lending protocol ParaSpace disclosed the progress of its attack handling and will reopen the protocol in phases. BlockSec and 12 other security experts in the field have completed the security patch review and testing. Currently, ParaSpace is undergoing security reviews and testing to enhance the security of withdrawal time locks. ParaSpace has launched a repayment feature and will restore the supply function later today, resume automatic compound interest and cAPE automatic repayment features on Tuesday, restore liquidation functionality on Wednesday, and enable borrowing and withdrawal features with Timlock security enhancements over the weekend.

ParaSpace stated that all affected users will receive an NFT that can be redeemed for future ParaSpace tokens. Additionally, users who provided funds to the ParaSpace lending pool will receive extra tokens to compensate for missed earning opportunities during the protocol's suspension. All users impacted by the protocol freeze will receive this NFT, regardless of whether they continue to use the platform. Furthermore, ParaSpace will introduce an incentive program.

According to previous reports from ChainCatcher, on March 17, ParaSpace stated that it observed a suspicious transaction and suspended the entire ParaSpace protocol as a security measure. Currently, ParaSpace's contracts cannot perform any transactions, including withdrawals, deposits, or liquidation activities. Subsequently, BlockSec tweeted that it had thwarted an attack on the NFT lending protocol ParaSpace, saving 2900 ETH in assets. (Source link)