bZx hack | February 2020
There is a full post-mortem of this loss event and the claim payouts in the bZx flash loan event Medium post.
For a recap of the bZx flashloan event, you can read the following summary.
Total claim payouts
A total of $33,720.10 was paid out to bZx v1 Smart Contract Cover Holders. Smart Contract Cover has since been deprecated and replaced by Protocol Cover, an updated cover product that protects against more risks in DeFi.
Overview
After this hack occurred, claim assessors discussed this loss event in the Mutual's Discord server. Because Nexus Mutual is a discretionary mutual, members participate in the Claims Assessment process and review the validity of claims submitted after a loss event occurs.
Members reviewed the information available after the hack occurred and the consensus was that this was a covered event, as it met the conditions outlined in the existing cover wording at the time of the hack.
Filed claims and outcomes
A total of five (5) claims were filed and voted on by claim assessors. As stated in the section above, claim assessors had determined this was a covered event. Once it has been determined that an event is covered, claim assessors review the validity of claims to determine:
- Did the member have active cover at the time of the hack?
For more information on each claim, review the sections below and the Nexus Mutual Claims Dune dashboard.
Approved claims
Claim assessors reviewed and approved Claims 2, 3, and 5. Of the three claims that were approved, none required proof of loss, as these covers had IDs lower than #2291. As proof of loss was not required, members could submit a claim regardless of whether or not they experienced a loss of funds due to the bZx hack.
| Approved claims | ||
|---|---|---|
| Claim 2 | Claim 3 | Claim 5 |
You can review a summary of each claim in the Nexus Mutual Claims History database and the Nexus Mutual user interface.
Denied claims
Claim 1 (Cover ID #121). This claim was initially denied when it was submitted. This claim was filed again and, after much discussion, members determined they had made a mistake with their first decision. The second submission, Claim 3, was approved and the member received a payout, since their cover was active at the time the hack occurred.
Claim 4 (Cover ID #188). The member who filed this claim purchased their cover after the loss occurred and filed a claim. Since members have to hold active cover at the time a hack occurs, this claim was denied.