CVC Statements for Claim filed on 02/04/2021 for BT Finance

There was a claim submitted on Cover Protocol for BT Finance on 02/04/2021 here.

A Snapshot proposal is created here

Claim Guidelines can be found here.

This post is used for Cover Protocol Claim Validity Committee to post their statements on their decisions and findings.

Please do NOT comment if you are not a CVC member.

Statement format (THIS IS AN EXAMPLE):

CVC member name: Pumpkin Auditing Firm
CVC member link: pumpkinauditing.com
Decision: Valid claim
Payout Percentage: x% (up to 100%)
Investigation: evidence/links to back up the decision and payout.

Incident Details
One of the relevant exploit transactions for the claim filed is: Ethereum Transaction Hash (Txhash) Details | Etherscan

At 08:13:20 PM UTC on February 8th, 2021, a transaction was performed that resulted in a realized loss of ~$2,500,000 of user funds in BT Finance. A claim was filed for a payout to COVER_BTFINANCE_2021_03_31_DAI_0 coverage token holders.

Here are a few tweets explaining more details.

CVC member name: The Arcadia Group
CVC member link: arcadiamgroup.com
Decision: Valid claim
Payout Percentage: 60%
Investigation: BT Finance Post-Morterm using the provided information of a hacker profit of 31.87renBTC and 211 ETH (source: BT Finance) and the noted realized loss of around 60% of depositor funds upon withdrawal on multiple of the vaults (prior to the relief deposits (BT Finance Tweet & Transactions). Following the partial payout guidelines, I would recommend at minimum 60% be paid out to CLAIM tokens.

Edit: By user error the wrong number was inputted for ETH loss in a previous edit of this post

1 Like

CVC member name: PeckShield
CVC member link: www.PeckShield.com
Decision: Valid claim
Payout Percentage: 60%
Investigation: Based on analysis from BT Finance, the loss is about 60% funds in multiple vaults, therefore, I recommend for a 60% pay out.

CVC member name: Defi Yield
CVC member link: Website / Twitter
Decision: Valid claim
Payout Percentage: 60%
Investigation: I have analyzed the information provided from BT Finance and can confirm that this claim is valid.

CVC member name: Weeb Mcgee
CVC member link: weeb (@Weeb_Mcgee) / Twitter
Decision: Valid claim
Payout Percentage: 60%
Investigation: Based on the below investigation, I believe this claim should be accepted on the basis that this was an exploit by a 3rd party using flash loans to abuse the smart contract. The resulting behavior was not expected nor intended by the protocol or the users.

Post mortem: BT.Finance Exploit analysis report | by BT Finance | Feb, 2021 | Medium