Governance Update #36
Snapshot voting is live for AIP-96 and AIP-97 and AIP-95B is up for re-vote!
AIP-95B Multichain Response - Fantom [REVOTE]
Status: AIP-95B is up for a snapshot vote until August 25, 2023 at 04:00 UTC
Much like AIP-95A, this proposal aims to address all bridged FTM assets affected by the Multichain exploit by using the DAO treasury. However, the solution for assets on FTM is different from those on OP and ARB. AIP-95B proposes to create a refund distribution system for holders of FTM-alUSD and FTM-gALCX on Optimism. If approved, this will be funded using roughly $150k of alUSD and 5,590 gALCX from the Alchemix treasury. The tool will allow holders to bridge funds off of FTM while incurring a reduced loss compared to the actual impact of the Multichain breach. After which, the Fantom deployment and Alchemix assets on the chain will essentially be purposeless. Check out the full proposal for additional details on how this system will work.
AIP-96 Stuck alETH Bridger Resolution
Status: AIP-96 is up for a snapshot vote until August 25, 2023 at 04:00 UTC
The recent Curve alETH/ETH exploit, and subsequent return of funds by the exploiter, resulted in a number of assets being purchased and/or stolen at an extreme discount compared to market prices. These assets were then further disseminated through additional liquidity pools. In an attempt to prevent further spread of stolen alETH, the Optimism Multisig disabled the Connext contracts on Optimism to prevent them from minting alETH. All alETH in-transit at the time the contracts were disabled were lost due to failed transactions. Roughly 420 alETH was lost to failed transactions, a majority of which was purchased well below the backing price of alETH and was a direct result of the exploit. Due to alETH being stolen or purchased at an extreme discount, LP positions realized significant losses that are directly correlated to arbitrage profits on the discounted alETH. This proposal explores some of the many possible ways to resolve the profits that bridgers would have realized from arbitrage had they been able to successfully bridge, versus the loss to LPers. This exploit is a complicated situation that will be discussed in greater detail during the post mortem. However, in context to this AIP vote, DAO voters should consider the full context of events when choosing a voting option for AIP-96. There are four voting options that will be ranked to determine the path forward.
AIP-97 Resume alETH Alchemist, re-direct ETH backing to AMO
Status: AIP-97 is up for a snapshot vote until August 25, 2023 at 04:00 UTC
Due to the Curve alETH/ETH exploit, the alETH Alchemists were paused as a precautionary measure so the full extent of the impact could be determined. Pausing the alETH Alchemists disabled repayments, self-liquidations, deposits, and withdrawals of underlying assets. Burns (loan repayments with alETH) and withdrawals of the yield token were not affected by the pause. AIP-97 has two purposes: to resume the alETH Alchemist and to redirect yield flow, self-liquidations, and repayments to the AMO instead of the transmuter. The full proposal details the differences of using the AMO versus the transmuter to distribute the returned funds and how each could affect LPers of alETH. Be sure to read the full proposal and vote!
Since the last update…
AIP-95A passed a snapshot vote, allowing the backing to Optimism/Arbitrum alUSD to be restored.