An Open Letter from the CEO to the VEE Community

Dear VeeFinance Community,

As the CEO of VeeFinance, I Tejas Shinge, sincerely apologize to our users and community for the loss of assets that resulted from the September 20th hack. I am fully aware of how our shortcomings impacted our users and community, and will give it our best efforts to pay back the losses our community had to suffer. We have already launched our Compensation Plan to repay user losses, but I have also decided to personally fund the early repayments of all QI, PNG, and XAVA lost in the hack as the recent volatility of the digital asset market brings additional risks to asset value. The original Compensation Plan will remain in place.

VeeFinance will transfer all QI, PNG, and XAVA lost to the VeeFinance liquidity pool within 24 hours of this announcement. Users who lost the above tokens during the hack can then complete their withdrawals in the V1 liquidity pool. Once users have completed all withdrawals, the original Compensation Plan for these three tokens will be finished.

I’d also like to touch upon a few crucial points regarding us after the hack. When VeeFinance was hacked on September 20th, the VeeFinance team immediately locked down V1 to avoid any more potential damages. We made thorough review and monitoring of all transactions, hacker address, and investigated the incident with code review agencies and trading platforms. We’ve also reached out multiple times to the hacker to negotiate a solution. Unfortunately, 3 months have passed and we’ve yet to hear back from them. Please know that we will keep reaching out to the hacker for a response, and will keep the community updated with each step of the process.

But the past three months have not been without progress. We explored all kinds of solutions for various situations, and announced our first Compensation Plan in October.

As stated in October, we promise to use 100% of the platform’s revenue for compensation in addition to recovering the stolen assets.

Regarding the stolen assets, the total crypto revenue of Vee.Finance V1 in September and October was 52 ETH, 2.13 BTC, 168 AVAX and 16,508 USDT, but unfortunately, these as well as the assets of V1 users were all stolen in the hack. As of November 28th, all of the platform’s available revenue, which was 20,335 USDT, has been injected into the Compensation Pool.

Meanwhile, as we reached out to the hacker, we also focused on optimizing security for VeeFinance’s development and future:

1. Security Audits:

In addition to our existing SlowMist and certiK auditors, we are also in contact with more authoritative security agencies to participate in the security of the VeeFinance protocol.

2. Product Testing:

VeeFinance will optimize our product testing procedure to ensure that no users will ever suffer losses related to our product protocol.

3. Data Monitoring:

From now onwards, VeeFinance have added efforts in optimizing both protocol and team manpower for monitoring data 24/7.

The VeeFinance team is continuously upgrading itself to strengthen security and enhance our product to ensure the safety of all user assets. It has been a commitment since the beginning of VeeFinance’s establishment, and is a commitment that will stay.

VeeFinance’s journey from start to today, has always been inseparable from the support of our community and users. VeeFinance was launched on September 14. Right after launch, the total number of DApp users exceeded 3,800 and the total number of VEE token-holding addresses was over 3,400. TVL exceeded $300 million in a mere 5 days. I and the rest of the VeeFinance team are confident in our capabilities for once again taking the center stage in DeFi and for bringing services of value and high-returns to our users.

VeeFinance promises to cover all losses suffered from the hack. I’d like to emphasize that recovering the stolen funds remains as a top priority. We will continue to monitor the situation and recover all stolen funds and return them to users at the earliest possible time.

Again, on behalf of the VeeFinance team, I apologize for the hack and the losses it caused to our community. VeeFinance promises to put in all efforts to repay everyone impacted. The September 20th hack was a humbling reminder that hacks are an unfortunate challenge all DeFi protocols face and must work against at all times. I assure you the VeeFinance team will overcome all difficulties and will keep moving forward to bring value to our users and community. We worked hard to earn each user’s confidence and support, and remain every bit as committed to ensuring the security and value of VeeFinance for our community.

We are grateful to the community’s support and belief in us, and we look forward to bringing good news in the near future and into the New Year.

All my best,

Tejas Shinge

CEO of VeeFinance