OFFICIAL STATEMENT Dear Palmians, As you already know, our PLP Vault was exploited a few days ago which resulted in the loss of funds from the pool. As soon as we gained knowledge of this event, the team has been working tirelessly to recover the lost funds and understand the vulnerabilities that allowed the exploit to happen, aiming to further secure the platform and ensure it doesn’t happen again. We’re extremely happy to announce that we have successfully recovered 80% of the compromised funds, which are now secure in Palmswap’s wallet. Our team is now working to return the funds to our liquidity pool which will take the total PLP deposits to 84.05%. We are also reviewing additional solutions to fund the remaining 15.95%. We aim to ensure no user within our community has incurred any losses, and it reflects our commitment to safeguarding your investments. We were able to do this by contacting White Hat and reaching an agreement that included the following terms: • The White Hat commits to return 80% of the total drained funds. • The White Hat is allowed to keep the remaining 20% of the funds as a bounty for finding the vulnerability. • Palmswap will not press charges against the White Hat, as the negotiation was carried out in good faith between both parties. As of right now, the White Hat has delivered on their end of the deal, and the assets have been transferred to our wallet per the terms of the agreement. We are working to fix all the vulnerabilities identified in this incident. After this, we will be conducting a thorough review of our entire infrastructure again and implementing additional security enhancements with utmost priority. We want to express our gratitude to all our partners including Gotbit and Zokyo who supported us during this time. Particularly, we would like to extend our heartfelt appreciation to Hypernative Labs for being the first one to inform us about the exploit. We are grateful to them for providing timely assistance throughout this challenging period. Their dedication to the security and safety of the DeFi ecosystem is commendable. We also want to thank you, our wonderful community, for your unwavering support and patience. Your encouragement and loyalty during our difficult times is a true inspiration to the team, and it motivates us to double our efforts. We will soon publish a security report that will elaborate on this incident from start to end. Our security and research team are completing the investigation and we will soon publish the account of the events, our assessment and learnings, and the steps we are planning to take in the future. We have taken this incident as a valuable learning experience and will continue to enhance our security measures to safeguard your assets. We would like to assure you that we are fully committed to maintaining the reliability of Palmswap and your trust in us only made us stronger. Thank you all, Team Palmswap