Nexus Mutual has transferred $ 250,000 to reimburse users caught in the $ 3.5 million exploit of Arcadia Finance, which marks one of the first major insurance institutions in Base Blockchain. The payment arrives if Arcadia’s own recovery plan remains weeks after implementation.
Summary
- Nexus Mutual paid $ 250,000 to victims of the $ 3.5 million hack from Arcadia Finance, which marked one of the first major insurance arrangements of the basic chain.
- The payment offers early refund prior to the own delayed recovery plan from Arcadia on the basis of ‘recovery tokens’.
On August 4, Crypto Insurance Alternative Nexus Mutual announced that it had paid $ 250,000 to users affected by the Arcadia Finance exploit of July 15 at the base, where attackers empty $ 3.5 million in stablecoins by a vulnerability of a contract.
Again, Nexus Mutual is there, protecting Defi users and paying claims.
Building trust is a hard -fought combination of time and consistency. https://t.co/ZOV799K3YZ
– Hugh Karp 🐢 (@hughkarp) 4 August 2025
With the Smart Contract BUG, funds could be transferred directly from user accounts, with stolen assets that was quickly won in wrapped ether. Nexus Mutual began to process at the end of July after a standard CoolDown period, in honor of the coverage for eligible users who had purchased protection through OpenCover, a basic native distributor.
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A turning point for Defi -risk reduction?
The Arcadia Finance -payment indicates a deeper shift in the way decentralized finances begin to confront his most systemic weakness: the lack of credible story when things go wrong. Nexus Mutual has now paid more than $ 18.2 million for 37 incidents since 2019, according to the Public Claims Dashboard.
The Arcadia arrangement agrees with a selection of historical payouts, including $ 5 million for the Tribedao Hack 2022, $ 2.3 million for the $ 197 million exploit of Euler Finance and almost $ 5 million when FTX collapsed. These are not abstract figures; They follow the evolution of Cryptos’s risk management infrastructure for the most chaotic years.
Although smaller than other settlements, the payment of Arcadia is symbolic. The timing is important: this is one of the first high-profile insurance resolutions on the base, the Layer 2 chain of Coinbase, which only recently started seeing sustainable Defi activities. For affected users, the payment served as a crucial stop gap in the absence of protocol-native compensation, arrival before Arcadia could mobilize a full recovery plan itself.
In the meantime, Arcadia Finance has mapped another course with its Recovery Token (RT) system, a complex mechanism in which victims receive USDC-Peggen tokens that are exchanged by deployment, discounts on the costs or the sale of a secondary market.
Although innovative in his attempt to draw up incentives, the plan requires that users retain involvement in the protocol in the long term. Some prefer the simple ETH transfers from Nexus Mutual, who do not impose lockups or conduct conditions.
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