Indexed Attack Compensation Plan
The Indexed Finance DAO voted between October 27th and November 2nd on the parameters of the compensation plan relating to the recent attack.
The results of this plan are as follows:
- The compensation plan will be implemented via Pickle Cornichons (tokens will be issued to the affected which they can burn for DAI at a pay-out rate they are happy to accept). The DAI backing these claims will be sourced from a combination of extracted assets from the affected pools (see below) and Indexed protocol revenue over time. A further article will be published upon deployment explaining exactly how this works and what it means for the affected.
- There will be two separate claim tokens issued: one for direct holders of the affected tokens (DEFI5, CC10 and FFF) and one for holders of LP tokens for any of these three. These tokens will have to be claimed by the affected on the Ethereum main-net once issued.
- 99.32% of the losses incurred by holders of all affected tokens on any chain will be compensated,
- 88.5% of the losses incurred by holders of all associated liquidity tokens on any chain will be compensated,
- The DAO has agreed to consider a Governor Alpha proposal that would lead to the draining of assets remaining in the DEFI5, CC10 and FFF pool contracts and subsequent retrieval of remaining liquidity from LP pools. The assets obtained by the DAO in this way — if such a proposal is passed — will be converted to DAI and used as a base against which the affected can redeem claims.
- The amount of debt incurred by the attack will not be inflated over time in order to reflect the lost upside opportunity.
In the event that the exploited assets are returned to the Indexed DAO Treasury or any other entity/wallet through which such a return can be effected in the future, the DAO will have to reconvene to decide the mechanism through which these assets are redistributed to those affected by the attack: potentially through the Cornichons as DAI (depending on asset prices at the time) or some form of restorative index token/s containing the assets. This decision may also be directed by a court, and there’s not much point in the DAO speculating on the exact details at present.
On behalf of the DAO, the author would like to thank the affected (and the wider community) for their patience and support thus far.
Contributors to the DAO must now spend a little while putting together subgraphs in order to query affected balances across all chains and assets, as well as factor in amounts that people were able to retrieve by selling or burning up until now to ensure that the affected are not issued tokens that result in overpayment.
A subsequent update will be produced via Medium when this process is complete, informing the affected where, when and how they will be able to make their claims.