Great questions @NYCrypto_Invest! For the sake of transparency, we will also answer them publicly:
1. Is the Avalanche community still using @DeltaPrimeDefi?
Yes, although it is not currently a top 10 Avalanche protocol, there is still approximately $7,000,000 of TVL on Avalanche (similar to @StableJack_xyz & @SuzakuNetwork). Slightly over half of this is with lenders, and the rest with borrowers. We’ve found that the remaining borrowers are mainly users who 1. have delta neutral, low-effort positions and 2. have not been victims of any of the attacks. They have only seen their own portfolios grow throughout 2024, and combined with the answer to your second question, they have no reason to leave.
2. What safety measures have been implemented since the exploits?
Many safety measures have been put in place since the exploits, as the second half of 2024 and the beginning of 2025 have been dedicated solely to security upgrades. While most of these measures are not public for security reasons, an extensive report covering 71 different improvement categories— all implemented after the attacks— has been shared with Ava Labs (the creators of Avalanche). One notable public measure is the withdrawal timelock: since December 2024, any liquidity leaving the platform is subject to a 24-hour delay. We have both automatic and manual monitoring systems to ensure that withdrawals originate from the owner of the Savings/Prime account, and we can pause the protocol before funds leave if necessary. While strict, this measure would have prevented any previous attack.
3. Have affected users been fully or partially compensated?
Users affected by the first attack have been fully compensated from our self-built insurance fund. The remaining balance of this fund was then used to partially compensate for other losses. For every dollar still unaccounted for, users received 1.4 rTKN, which can be exchanged 1:1 for dollars over time from future revenue. The initial payout is still pending, but all funds reserved for this can be tracked in these wallets: 0x8995d790169023Ee4fF67621948EBDFe7383f59e and 0x5e7d3d4F744378C2259bb6C52fbF247be473860D. Alternatively, affected users had the option to exchange their rTKNs for PRIME at a discount during a conversion window. This PRIME was donated by the founders, with 50% of the team allocation given to all affected users who opted in.
4. Anything else to share? [self-inserted]
All that being said, we’re currently in a challenging position. While many of our borrowers perform well with their delta neutral positions (which, to be fair, is when DP is used optimally), the project’s revenue— which depends on liquidations— has been virtually nonexistent for the past nine months. Although DeltaPrime functions regardless of revenue, the lack of capital means that new protocol integrations, features, and other expansions will slow down or halt altogether. Recently, we’ve been betting on @DegenPrimeDefi (a DP fork focused on meme- and AI coins) due to its high APY and monetization potential. While utilization and APYs are as high as expected, this platform also faces significant growth challenges, burdened by the dark age (Q3-4, 2024) of its predecessor.
After nearly four years building on Avalanche, this period will be defining for DeltaPrime and the many users who, for various reasons, want it to succeed.