Radiant DAO Unveils $50 Million Recovery Plan After October Security Breach
Radiant Capital is moving forward with a recovery plan to repay users affected by the October 16, 2025 security breach that resulted in losses exceeding $50 million. The proposal, known as RFP-47, outlines a strategy for merging assets and creating dedicated claim contracts for user reimbursement.
The plan involves consolidating various tokens into five main claim contracts on the Arbitrum and BSC networks. Users' assets will be merged into WBTC, WETH, WBNB, ARB, and USDT contracts, with each user receiving percentage-based recovery shares. For example, stablecoins like USDC, DAI, and USDe will be merged into USDT, while different forms of Bitcoin and Ethereum tokens will be consolidated into WBTC and WETH respectively.
The recovery process includes a liquidation mechanism for outstanding loans, with priority given to preserving users' Bitcoin and Ethereum holdings. Loans will first be repaid using matching assets, followed by USDT, ARB, BNB, and finally BTC and ETH deposits split equally. Any balances below $1 before merges and under $10 after merges will be treated as dust and set to zero.
A two-phase recovery interface will be launched to help users track their claims. The first phase will allow users to view their balances and verify calculations, while the second phase will enable direct interaction with the claim contracts. The conversion prices for asset mergers will be based on daily closing prices no earlier than January 31, 2025, using data from the Dune API.
The repayment schedule could extend over several years, with the Radiant DAO planning to allocate funds to recovery claim contracts twice per year. Distribution will be proportional to each contract's Total Value Locked (TVL). If any stolen funds are recovered, they will be returned proportionally to users based on contract TVL.
The proposal has received strong support from the community, with over 99.98% of votes in favor with one day remaining in the voting period. A separate proposal will address how the Radiant DAO plans to raise funds for the recovery, and another proposal in Q1 2025 will deal with unlimited approval losses.
