Allow the DAO to coordinate a proposal that will include incentives for TRIBE holders to vote in favor of full repayment for Fuse exploit victims. The incentives would be paid from the reimbursed amount and would thus be conditional on the successful passing and executing in favor of full reimbursement to the affected parties as part of the TRIBE wind down.
As a depositor in Rari Capital Fuse Pool 18, Olympus lost 9.6m DAI (out of the deposited 10m, according to this sheet) in the Fuse exploit that occurred on Saturday April 30 at around 2:20 AM PT. In the past, efforts have been made to get these funds back through governance proposals, but ultimately the Tally on-chain vote failed after the Fei Labs team switched their stance.
Recently, Fei Labs published a proposal to wind down the protocol, liquidate the holdings and allow redemption of FEI and TRIBE. This proposal, referred to as “the status quo” below, includes the refund of Fuse exploit victims, however only using 57M TRIBE from the TRIBE/RGT peg exchanger utilized in the merger. The proposed plan would result in full repayment to smaller depositors, while leaving larger depositors (Frax, Olympus, et al.) with cents on the dollar. In total, the weighted average repayment would be approximately 30% of the exploit.
Even though there has been pushback, and there are enough funds to pay everyone back, the Fei Labs team has stood by their stance of paying out this exploit from funds directly associated with Rari Capital (source):
However, they did note they would support any decision made by TRIBE holders (source).
Currently, the incentives of TRIBE holders and Fuse exploit victims are misaligned. While we believe full repayment is appropriate and fair, we need to be practical with respect to the “rules of the game” before us. As such, we would like to flip the script and offer a solution to ensure a more equitable and mutually-beneficial outcome vs. the status quo.
Incentivize TRIBE voters to vote for full repayment of hack victims in a win-win scenario:
TRIBE voters who wish to receive the incentives delegate their votes to Olympus (0x245cc372c84b3645bf0ffe6538620b04a217988b) prior to the vote.
Olympus will set up a contract to take receipt of repayment and distribute automatically to victims.
Any account that would have been made whole under the status quo will still be made whole and will not need to participate in the incentives.
Any account that would not have been made whole under the status quo will remit the incentives on a pro rata basis based upon the difference between the status quo and full repayment
TRIBE voters who delegated to Olympus will receive their pro rata share of the incentives
Thus, Olympus or its Treasury would not be exposed to risk. Additionally, the incentives would be paid from the reimbursed amount and would thus be conditional on the successful passing and executing in favor of full reimbursement to the affected parties as part of the TRIBE wind down.
Due to the time sensitive nature of this proposal, the polling process begins now and will end in 48 hours. After this, a Snapshot vote will be put up.
For: Allow the DAO to incentivize TRIBE holders in order to enact full reimbursement of the Fuse exploit
Against: Do nothing