Thoughtfully read the chronology of the Cover hack, according to the team. I recommend that you familiarize yourself with it, it reminds of satirical pop scenes :) From the interesting: on 27.12 at 6pm UTC, developers received a signal from users that the Blacksmith contract in protocol allows minting tokens. The developers tried to alleviate the problem and went to bed quietly.
On the morning of December 28 at 08:08:12 UTC, the first exploit occurred (the developers continued to sleep peacefully). Then, at 09:18:28 UTC, the same hacker continues to mine coins (developers continue to sleep :). Then the Grap Finance team (white hacker who later return back all ETH) joins the hack at 11:54:47 UTC (developers still sleeping :). At 10:54:00 UTC, some protocol user notices what is happening and tries to contact at least one of the developers who also continue to sleep :)
Finally, at 12:04:00 UTC, two team members wake up and start trying to figure out the problem. Everyone already knows the end of the story and it`s very bad: while the developers were sleeping, an infinite number of Cover tokens merged on DEX swaps and Binance, up to 12.40 UTC, when Binance stopped trading. At the same time, the token continued to be traded on Uniswap and Sushiswap. And only at 4.35 PM UTC, the team announced on Twitter the release of a new token and a call not to buy the old one. At the same time, promising to exchange the owners of old tokens for new ones, but only to those who had tokens before the exploit (28.12 at 08:08:12 UTC). Thus, the unprofessional actions of the team set up a huge number of traders who only did their ordinary routine
On the one hand, you can say: why did traders continue to pick up tokens on the leaks, because they should have suspected something was wrong? But on the other hand, everyone is living a real life, and not tracking every minute of tweeter. Moreover, Cover's official tweeter was silent, not saying a word about breaking the protocol. Only Binance announced about exploit and stop trading.
In general, they shifted from a sick head to a healthy one. Welcome to the DeFi jungle.
As written on every DeFi "Use at your own risk".
But it`s unfair and looks like scam by the team.
https://coverprotocol.medium.com/12-28-post-mortem-34c5f9f718d4
https://coverprotocol.medium.com/compensation-plan-b089d499191e
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