Revised: Raft Recovery Plan (17 November 2023)

EDIT: The latest recovery plan (edited 22/11/2023) with a recovery rate of 42% includes all LPs on Aerodrome.
The Beefy smart contract address and CoW solver address have also been replaced with the underlying users’ addresses.

In response to the valuable feedback and insights from the Raft community regarding the initial draft of the recovery plan, we’ve further developed the compensation plan to ensure the utmost fairness and equity for all affected users.

As a reminder, 3,963,192.62 DAI from the peg stability module (PSM) will be distributed to users impacted by the incident, taking into account their R exposure before the hack (November 10, 2023 06:44:11 PM | Block: 18543410) and their holdings and interactions within the protocol as of the snapshot time (November 14, 2023, 09:48:47 PM | Block: 18572928).

Eligibility Criteria

We’ve expanded the eligibility criteria to accommodate various scenarios. To qualify for compensation, users should meet the following requirements:

1. Holdings Requirement: They must hold R (either idle, in RR, or LP tokens) as of the snapshot time. Buyers of R before the announcement on 11 November 2023 have also been considered.

2. Trading Activity Restriction: You have been excluded from the compensation plan if you did not have exposure to R before the exploit but traded any R after the exploit.

3. Special Case for MEXC Users: Users holding R in MEXC must provide proof that they purchased these tokens before the exploit date. They should also provide proof to MEXC that they owned the R at the snapshot time.

Compensation Categories

Compensation (in DAI) has been calculated differently for three categories of affected users:

1. Liquidity Providers (LPs)

Methodology: Compensation will be based on the USD value of each LP position at the snapshot time. The R/RAFT liquidity pool has been added to this list since the last draft.

The liquidity pools considered for the compensation plan include:

  • R/sDAI (Balancer)
  • R/DAI (Balancer)
  • R/wstETH (Balancer)
  • R/RAFT (Balancer)
  • R/wstETH (Maverick)
  • R/rETH (Maverick)
  • R/ETH (Maverick)
  • R/USDC (Uniswap V3)
  • R/USDC (Aerodrome)

2. RR Holders

Methodology: Compensation will be based directly on the amount of R held in RR (Ethereum mainnet and Base) at the time of the snapshot.

3. R Idle Holders

Methodology: Similar to RR holders, users who had exposure to R and bought R between the security incident and the announcement advising users not to buy R are considered in the recovery plan. However, the amount of R they purchased will be deducted from their total exposure.

Anyone who bought R after the announcement is ineligible for this compensation plan.

Under this latest proposal, those who sold R for an average price below the current recovery rate (45%) between the hack and the snapshot time will be compensated with the difference.

4. veRAFT Holders

Methodology: All users who held veRAFT before the exploit have been included in the compensation plan based on their R and RAFT exposure underlying the veRAFT token.

Check out the compensation distribution details (updated) in the spreadsheet below:

Further considerations and final steps

The current draft of the recovery plan is open for comments and feedback from the community until 23:59 UTC on Wednesday, 22 November 2023.

WE KINDLY ASK EVERYONE TO PROVIDE FEEDBACK IN THIS GOVERNANCE FORUM.

After this feedback period, the plan will be finalized and implemented, with regular updates and further information on how to claim the final compensation.

2 Likes

this is much better and thank you for making it better

1 Like

It sucks that repaid amount is lower than before but this seems to be a more balance outcome.

The remaining two questions left to answer are:

  • is the distribution airdrop or claiming?
  • if claimed, what is the timeline to claim, and what happens to the money which is not claimed. How is that redistributed, where does it go etc.

My experience of such exploits (I have been exploited 30+ since 2018) is that a significant portion is NEVER claimed

1 Like

Messed up proposal that makes it worse for LPs and people that actually lost money than before. Why take a snapshot of days after the hack? Snapshot should be from the day of the hack.

Compensation based on the actions that people took after the hack when there was no communication from team and lots of panicked buying and selling doesn’t make sense.

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Much fairer now! Bravo!

PS: any plan for IOUs or similar for the outstanding amounts?

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Could you advise on status for holders of the LP token through the beefy vault? mooAuraR-DAI.

I had 40,000 LP tokens held at time of exploit that were not captured during the snapshot.

Hi I would like to ask about R/Raft pool on balancer! When join in pool I add - 19,808.53 RAFT and some R to proportion of 80/20 and than I staked for 1 year -8,855.2 (20R80RAFT) . All Trx down bellow
I check spreadsheet and didn’t see any compensation for this pool, only - 4.64 / Explain please situation with this wallet address - 0x2f75fFe98046E4a55Fa79daf97B2730d7e707186
Thank you

This seems fair, hats off to team.

2 Likes

This is much better than before.Still two questions:

  1. Seems my address is not included in the revised excel,I am R-Raft holder, please check discord ticket-0681
  2. What is the compensation conversion ratio,1R=how many DAIs?
  3. R-Raft holder lost more than 80% in total value, the same amount compensation is preferred.

400k DAI to users who sold seems way too much. It was their choice to sell so low, so why compensate.

Users who bought before the announcement should also be excluded. They were speculating at the expense of LPs and other holders, so why compensate them at all?

Still makes no sense to include any snapshot or activity post-hack, things should be based only on values and balances from before the hack. Any activity after was done at the expense of actual users of the system, so it makes no sense to reward these kinds of activity.

Also what about further compensation for losses? No mention of giving some further compensation in RAFT tokens or from general protocol treasury? This should also be on the table.

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What’s the rationale behind including veRAFT holder in the compensation plan? In an event like this everywhere else, token/equity holders would be the last to get any compensation, debt holders/R holders would be the first to be paid out and if there is anything remains, only the token/equity holders get compensated, not sure why it should be different in this case. Think traditional companies and for example, FTX equity holders/FTT holders.

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Glad to see it, it’s a very fair plan.

Compensation keeps going down which further increases the incentive for the DAO to issue IOUs to the affected users similar to Bean or Pickle Finance by giving out a debt token to the holders that were lost which represents the loss that they incurred which will be paid in due time with protocol future profits

Hey,

Can we have clarity on the proposal regarding:

  • the distribution process: airdrop or claiming?
  • if claimed, what is the timeline to claim, and what happens to the money which is not claimed. How is that redistributed, where does it go etc.
  • Creation of an IOU with a claim on future profits?

Hey Raft team,

Why has the claim contract be seeded with 3m DAI instead of 3.9m DAI? Don’t tell me the team is taking a cut of 900k (?!?)

Also please clarify what will happen to the unclaimed DAI (I am sure there will be).

Thanks in advance

No, the team is not taking any cut. Please do not spread FUD.

All unclaimed DAI will return to the Treasury and the community will decide what to do with it.

1 Like

Hi @pujeetmanot

If the plan is to give the excess DAI to the Treasury, what is clear is that it will NOT go back to the victims of the exploit (i.e. the R holders) given that the interests of future Raft holders and voters will be at odds with the victims of the exploits.

Not spreading FUD, but given the teams are the biggest Raft holders, sorry but indeed it really looks like the team is planning to keep the unclaimed DAI for themselves.

Don’t you feel that taking this money back to the treasury is taking advantage again of people who already took a 60% loss for using your product? I definitely feel so

Hi. What should I do to receive DAI if my tokens were on MEXC exchange?
I can not find my address in the google spreadsheet.
0x7320ff2aec8797a587a051f605d7a37b4e2b40ea

A bit late to the party here…

Why is the net exposure not calculated based on a formula?

For example, I see some accounts have a way higher net exposure amount because the full R_DAI pool is included, whereas other accounts only have the R half included.

See screenshots added.

Hey, I can see there’s 264k that have not been claimed from the recovery plan.

Can we clarify whether this will go back pro-rata to LPs that lost their money? I heard previously that the team was considering keeping it for the “treasury” - if that’s the case that’s more than concerning that the team considers keeping it for themselves