Redemption Post-Incident Report

Regarding the Flash Loan Attack Against Redemption Swap

Today we come to you with the results of our findings on the Flash Loan Arbitrage Exploit, and our current plans/process of moving forward:

1.)What went wrong:

It has been determined that an oversight in the implementation of the burning mechanism affected the DEX’s AMM/LP pool functions. The code for Redemption V1 had been sent to Obelisk Auditing before the attack, but there was not enough time for the audit to take place.

A full breakdown of how the exploit occurred can be seen here: https://obeliskauditing.com/blog/articles/redemption-exploit-report?new

2.)How we are fixing it:

We have found a solution to fix the burning mechanism so it works as intended, while allowing the Swap and Liquidity Pools to function properly.

The developer of the previous contracts has decided to step down.

We have enlisted the help of blockchain security experts who have provided a secure solution and we are currently in the process of an audit of the new and improved Redemption V2 contracts.

Only after the new contracts have been scrutinized by a third party auditing platform will we be re-releasing Redemption. We will be looking into a second audit as well after re-launch.

The new version of Redemption will include improved countermeasures to prevent arbitrage attacks before they can happen.

3.)Compensation:

Due to the way in which the attacks took place, along with the tokenomics of Redemption, Redemption cannot provide a lump sum to those affected by the attacks.

However, we believe that the trust of our community is of the utmost importance, and we wish to help those affected in any way we can. We are in the process of actively developing a way for those affected to be compensated over time. Snapshots are being made for accuracy.

The details of this compensation plan will be revealed at a later date.

Moving Forward:

It is sad to know that there are those who would seek to exploit our community for a small personal gain. We direct this towards those who would try to keep us down:

We will not cower. We will not stop. We will stand again.

Most of all, we thank the community for their continued support.

-Redemption