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CREAM V1 Economic Exploit | October 2021

There is a full post-mortem of this loss event and the claim payouts in the Paying claims for the CREAM V1 exploit Medium post. Details of this event are also included below.

Total claim payouts​

A total of $397,087.31 was paid out to members including the Claim 102 payout from the DAO treasury.

Overview​

After this exploit 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 in the days after the exploit, while CREAM V1 Protocol Cover holders waited for the 72-hour cool-down period to pass before submitting claims. Claim assessors discussed the event and determined the CREAM V1 economic exploit was covered under sections 1.2 and 1.3 of the Protocol Cover wording.

Once the 72-hour cool-down period had passed, the Mutual released a statement with instructions on How to File a Claim, as well as information about the active covers and the Claims Assessment process. Within this Medium article, there is a Google Sheet that contains CREAM V1 active covers where information has been included about accepted, denied, and unfiled claims.

Filed claims and outcomes​

To date, eight (8) claims have been filed and voted on by claims assessors. As stated in the section above, claims 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 exploit?
  • Did the member provide proof of loss?
  • Did the member lose 20% or more of the covered amount?

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 98, 99, 100, 101, 103, and 105. These claims included proof of loss, which showed each affected member suffered a loss of 20% or greater. You can review a summary of each claim in the Nexus Mutual Claims History database and the Nexus Mutual user interface.

Approved claims
Claim 98Claim 99Claim 100
Claim 101Claim 103Claim 105

Denied claims​

Claim assessors reviewed and denied claims 102 and 104.

The member who filed Claim 102 did hold active cover and this member was affected by the CREAM V1 economic exploit; however, they did not lose 20% or more. At the time of this loss event, Nexus Mutual was unable to pay partial claims. This is the reason for the 20% or greater clause in the Protocol Cover wording.

Claim assessors can use their discretion when deciding claims. In this case, members recognized that a loss had occurred and this member should receive a payout. This could not be done through the Claim Assessment process, so members voted on a Snapshot proposal, which proposed paying out Claim 102 for the loss amount. This vote passed) and the member who filed Claim 102 was compensated using holdings from the DAO treasury for their loss amount.

The member who filed Claim 104 purchased Protocol Cover after the exploit took place and was not eligible for a claim payout for that reason.

Denied claims
Claim 102Claim 102 Snapshot vote (partial claim payment from DAO treasury)Claim 104