The inter-network lending protocol Radiant Capital began the process of debt repayment after an exploit in early January this year, which resulted in the loss of $4.5 million. The exploit was carried out using flash loans, leading to the depletion of Radiant's pools.
On January 23, Radiant successfully made its first payment of 1190 ETH (approximately $2.6 million), leaving an irrecoverable debt of about 720 ETH ($1.6 million). The remaining debt is planned to be repaid over the next 90 days using operational expense (OpEX) funds in accordance with Proposal RFP-27, and possibly using DAO reserve funds.
The debt repayment is being carried out in accordance with Proposal RFP-27, adopted on January 8. The majority of users (73%) voted to repay the debt using Radiant DAO's treasury funds and operational expenses. At the time of the decision, the balance of the Radiant DAO treasury was $5.2 million, with the protocol's income at about $500,000 per month.
On January 2, the USD Coin (USDC) lending pool on Radiant in the Arbitrum network was hacked for $4.5 million due to a rounding issue in Radiant's codebase, leading to a cumulative precision error. This allowed the attacker to profit from repeated deposit and withdrawal operations. The exploit depleted the equivalent of 1.3% of Radiant's total locked value.
