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Crypto DeFi

Ostium Offers Equity Stakes to Hacked Liquidity Providers

Ostium has proposed giving hacked liquidity providers equity stakes as part of a Stage 2 compensation plan. The plan pairs a pro-rata claim on recovered funds and half of Ostium’s opening fees with an optional equity allocation priced at the company’s next round. The percentages remain unset, and holders have until Oct. 30 to elect.

Original source

AI take

Compensating LPs with equity rather than cash alone shifts the recovery question from "when do funds return" to "what is the claim actually worth" — an unpriced bet on the next round, with percentages still unset. The structure also creates a split between providers who take the equity and those who prefer a pure recovery claim, and the Oct. 30 election deadline forces that choice before the terms are fully specified. Whether the unset percentages and the opening-fee share are enough to hold LPs in place is the open question.

Generated by AI for reference only.

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