zkSync Era-Based Lending Protocol EraLend Redeployed, to Allocate All Protocol Fees for Victim Compensation

zkSync Era-based lending protocol EraLend announced it has redeployed the protocol, using a new version audited by PeckShield. Product development, protocol operations, and business development will restart.

The old version, which was hacked, will transition into EraLend Classic, with all lending and borrowing activities disabled. Repayment and withdrawal functionalities will be operational until all users have exited the platform.

The new EraLend will delist SyncSwap LP as collateral to circumvent possible oracle manipulation risks. All the protocol fees will be redirected to the EraLend Classic USDC vault to compensate victims.

In addition, EraLend said it will work with partners to trace and reclaim the stolen funds until full recovery, and will keep seeking prosecution of the hacker. It will also introduce other compensatory sources, encompassing fundraising, prospective zkSync airdrops, and diversified platform income, should the retrieval of stolen funds face impediments. Meanwhile, EraLend has onboarded SlowMist as its security consultant.

Last month, EraLend was exploited in a read only reentrancy attack, with a loss of around $3.4 million.