Nemo Protocol Launches Debt Token to Compensate Hack Victims

Nemo Protocol, a DeFi platform built on sui blockchain, has unveiled a three-phase recovery plan following a $2.6 million exploit. The solution centers on issuing NEOM debt tokens to affected users at a 1:1 ratio with their losses.

The compensation mechanism offers flexibility—victims can either liquidate NEOM tokens through Sui-based decentralized exchanges or retain them pending potential recovery. A multi-party managed redemption pool will aggregate funds from both recaptured assets and external capital injections.

While stablecoin reimbursement WOULD have been ideal, the protocol acknowledged insufficient immediate reserves in a September 14 statement. The initiative begins with an asset migration process, using blockchain snapshots from the hack's timeframe to ensure equitable distribution.