Originally published on: September 30, 2024
Following a significant loss of $3.8 million due to a hacking incident on Sept. 27, decentralized finance (DeFi) platform Onyx has made a bold move to enhance its security and governance. The community has given the green light to the relaunch of Onyx Core, a permissioned financial network, as a key focus.
The proposal to relaunch Onyx Core, known as Onyx Improvement Proposal “OIP-46,” was swiftly introduced on the same day as the security breach. This proposal includes crucial changes to the protocol’s structure and offerings, with plans to close down the Ethereum-based lending market. Lenders affected by this closure will receive full reimbursement for the assets they provided.
By Sept. 29, the Onyx community unanimously approved OIP-46, signaling strong support for the proposed changes without any objections. The scheduled execution date for this revamp is set for Oct. 1, with details available on the Onyx platform.
In line with the restructuring, Onyx Core will be reintroduced as a primary product alongside Onyxcoin (XCN) staking. The platform will transition to a closed-ended lending protocol, enabling users to collateralize non-fungible tokens, real-world assets (RWA), and various crypto assets.
To combat future vulnerabilities, Onyx aims to tighten security measures in response to the recent hack. The hacker exploited a known vulnerability in the NFTLiquidation contract, a method previously utilized in attacks against the platform. To bolster its defenses, Onyx plans to fortify its protocols and shield users from potential threats.
As cybersecurity concerns continue to rise in the crypto space, Onyx’s initiative represents a step towards safeguarding its platform and its users. With losses from crypto hacks surpassing $2.1 billion in 2024, the need for robust security measures is more critical than ever. By prioritizing user protection and governance, Onyx positions itself for a secure and resilient future.
