# 2025-08-27: Neemo Finance Incident – Post-Mortem & Reimbursement Plan

## **Summary**

* On **July 5, 2025**, Neemo Finance (Astar) [was exploited](https://medium.com/@neemo_fi/neemo-post-mortem-report-76ff2bacb0b8) via a compromised admin key, enabling over-minting of **nsASTR** and subsequent liquidity drains.
* Governance intervention [secured 204,283,546.036 ASTR](https://x.com/neemofinance/status/1941808290754912478?s=46\&t=uY9EzKHhrQLtAvNtw-oHug); a white-hat later [returned 91.634 ETH](https://x.com/neemofinance/status/1944796053099655633).
* The community [approved](https://astar.subsquare.io/democracy/referenda/35) the Asset-Linked (Burn) Compensation Model; claims require burn-to-claim.
* The incident occurred on **Neemo Finance**. **Yay! smart contracts remain secure**. However, **Yay! stakers who used the Neemo vault are affected** through their nsASTR positions and should follow the steps below.

## Reimbursement Plan

* **Phase 1 — Immediate:** Burn **nsASTR** to receive **ASTR** from the recovered pool at the Phase 1 compensation rate.
* **Phase 2 — Long-Term:** Future Neemo dApp staking rewards (minus minimal ops) are redirected to a compensation pool and distributed monthly to wallets that completed Phase 1 until pre-hack value is restored.

## Action Required for Yay! stakers (Neemo vault)

1. **Redeem on Yay! Dashboard:** Convert **yayASTR → nsASTR** ([Neemo vault page](https://dashboard.yay.space/stake/soneium/neemo/redeem)).
2. **Claim on Neemo:** 
   1. Open <https://app.neemo.finance/withdraw/astar>
   2. Connect the wallet
   3. Enter the nsASTR amount
   4. Click **Approve token** for nsASTR
   5. Click **Withdraw** to receive ASTR at the Phase 1 rate shown in the app.

## How much ASTR will I receive?

* **Redemption on Yay! Dashboard:** **1 yayASTR → 0.9949 nsASTR**\
  \&#xNAN;*This redemption rate is the same as before the incident and has not changed.*
* **Phase 1 (Neemo burn-to-claim):**
  * Per 1 nsASTR: expect \~0.8686 ASTR in Phase 1 (≈ 78.3% of pre-hack value).
  * Per 1 yayASTR: expect \~0.8641 ASTR in Phase 1.

**Note:** The remaining **\~21.7%** (vs. pre-hack value) is planned to be paid over time in Phase 2 to wallets that complete Phase 1.

## References

* [Neemo's Post-mortem report](https://medium.com/@neemo_fi/neemo-post-mortem-report-76ff2bacb0b8)
* [Neemo Finance announcements on X](https://x.com/neemofinance)
* [Neemo Reimbursement Proposal](https://astar.subsquare.io/democracy/referenda/35)

## **Contact**

* Questions about **redeeming on the Yay! Dashboard (yayASTR → nsASTR)**: use our [standard support channels](https://docs.google.com/forms/d/e/1FAIpQLSfjwm3vXTG9ELgVJ-j0fVgJZ2-R8h9fg-kv6qnIqVL_rw7CrA/viewform).
* Questions about **reimbursement mechanics**, please refer to **Neemo Finance** official communications: [X](https://x.com/neemofinance), [Discord](https://discord.gg/Mv7a9sunXh).


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