Dough Finance, a decentralized finance (DeFi) platform on the Base blockchain, was exploited earlier this month, resulting in the loss of $1.4 million in digital assets. In a rare move of accountability within the DeFi space, the project’s two co-founders have stepped in and voluntarily returned $500,000 to help cover user losses.

The exploit occurred due to a vulnerability in the smart contract’s access control, allowing attackers to mint excessive protocol tokens and drain liquidity pools. While a portion of the funds has yet to be recovered, the swift action by the team is being seen as a step in the right direction for rebuilding community trust.

In a public statement, Dough Finance acknowledged the incident and detailed the breakdown of the repaid amount, confirming that each co-founder contributed $250,000. The remaining unrecovered losses are being addressed through a revised compensation plan, with the platform working closely with auditors to prevent future incidents.

The Base blockchain, developed by Coinbase, has seen increasing adoption but is now grappling with scrutiny as this hack marks one of the latest security breaches on its network. Dough Finance’s incident underscores the ongoing risks in DeFi, particularly in newly deployed protocols.

Despite the setback, community…