Raydium has initiated a community-driven compensation proposal open for voting, following an earlier proposal intended to compensate users affected by an exploitation. The proposal ensures that, should the exploiter not return the funds, Raydium will allocate necessary funds within its capacity for user compensation.

Raydium disclosed details of a major hack that occurred on December 16, in which an attacker exploited a smart contract vulnerability to withdraw over $2 million from liquidity pools. In response, the company upgraded its smart contracts to remove the exploited admin control and proposed a compensation scheme using its unlocked RAY tokens and a DAO treasury vote to reimburse affected users.