Penpie incident Overview and Request for Compensation Suggestions

[froomy]

@DefiPotato

To strip away 50% of its main source of income for the foreseeable future, however, will put this protocol on its deathbed.

Fully agree. Siphoning off 50% of the rewards from mPendle stakers to pay for not only 100% but 110% of the lost funds to the victims is asinine. mPendle is already suffering greatly with a 38% peg and significantly reduced APY as it is. Stripping away rewards will only further worsen the situation by causing stakers to exit in droves and significantly reduce the flow of new Pendle → mPendle.

[cheddarbob]

I don’t think taking money from pnp and mpendle is a good idea. less than half got effected so taking money away from the majority will leave a lot of sour tastes in the mouths of the mpendle, pnp holders. Which also happens to be the backbone of the protocol. I think there could be bigger issues going forward if you take money from the people who weren’t affected. Not sure if it would kill the project entirely but would definitely stunt growth hard until the sour people leave and new ones start coming in. I think a longer term payback plan would be better as the people non effected are happy and the people affected at least get there money back. It shouldn’t be the peoples problem to fix however the teams. Taking money from those unaffected just makes everyone involved in penpie upset as you the entire community then either lost money to the hack or got their money taken by the team. Just doesn’t fit well when thinking about the longer term for penpie.

[0xjo]

According to KSL’s proposal

Penpie incident Overview and Request for Compensation Suggestions

Penpie Recovery Plan This is the recovery plan I drafted based on discussions and ideas from the TG Chinese community. The docs link: English docs 中文 docs It is quite lengthy, so here is the TL;DR version: 1. What Happens to LP (Liquidity Providers) Compensation through SAFUPIE: LPs who suffered asset losses in the hack will receive compensation in the form of credits (SFC). These credits can be used to receive SFP tokens or be sold on the market. Claim Process: LPs can apply for co…

KSL and I suggested adding a new set of mechanisms within the framework of this proposal.
This mechanism can also meet the compensation needs of MT to a certain extent.

We calculate the following compensation units in USD
(Any ratio can be adjusted)

We propose applying for funds for special compensation from several options:
1.MGP Treasury
2. The team’s locked MGP
3. Team private compensation
4.PNP Treasury
Apply for compensation of approximately 10-30% of the total liability
Approximately 2.7 million-8.1 million USD equivalent tokens

Assuming 30 million $MGP will be utilized from the MGP DAO treasury
Compensation will be made at the market price of US$0.1 per pill, which is US$3 million.
Establish a short-term independent compensation mechanism
Debt users can apply for compensation at a rate equivalent to 40% within the time limit.
Assuming that all is eventually redeemed
Debt worth 300/0.4= $7.5 million US dollars will be recovered

SFP will provide 2.5 million SFP to MGP DAO at a ratio of 3:1
MGP DAO can have several operating directions
1.IDO (burn the MGP or return the MGP to the treasury)
2. Become viSFP to earn income and send it to viMGP while retaining governance rights.
3. Direct linear airdrop to viMGP

At the same time, the original liability of 27 million US dollars in the compensation treasury will be reduced by 7.5 million, leaving only a debt of 19.5 million US dollars in the compensation treasury.

Thus satisfying the urgent liquidity needs of those affected LP stakeholders, and reducing the comensation ratio of long-term MGP/PNP income. Further, we will enable the first substantial compensation payment through the SFP mechanism.

The aforementioned assistance in compensation is not limited to MGP DAO, it can be PENPIE/CAKEPIE/PENDLE or even Vitalik.

While making compensation, the other party can also obtain the governance rights of the future agreement and the governance rights of the innovative insurance agreement in the Cryptocurrency industry.

根據KSL的提案

Penpie incident Overview and Request for Compensation Suggestions

Penpie Recovery Plan This is the recovery plan I drafted based on discussions and ideas from the TG Chinese community. The docs link: English docs 中文 docs It is quite lengthy, so here is the TL;DR version: 1. What Happens to LP (Liquidity Providers) Compensation through SAFUPIE: LPs who suffered asset losses in the hack will receive compensation in the form of credits (SFC). These credits can be used to receive SFP tokens or be sold on the market. Claim Process: LPs can apply for co…

我與KSL建議在該提案的框架下補充一套新的機制。

該機制也一定程度上能滿足MT的賠付需求。

以下賠付單位我們都以USD計算

(任何的比例都可以進行調整)

我們提議從以下幾個選項中申請資金進行特殊賠付

1.MGP金庫

2.團隊鎖倉MGP

3.團隊私人賠償

4.PNP金庫

申請大約10-30%的負債總額進行賠償

大約為270萬-810萬美元等值的代幣

假設從MGP DAO金庫申請3000萬MGP

以市場價格每顆 0.1美元，也就是300萬美元的金額進行賠付

建立一個短期限期的獨立賠償機制

債權用戶可以於限期內以相當於40%的比例申請賠償

假設最終全數兌換完畢

將可以回收 300/0.4=750萬美元的債權

SFP將按照3:1的比例將250萬顆SFP提供給MGP DAO

MGP DAO可以有幾個操作方向

1.IDO (燒毀MGP或者MGP重新返回金庫)

2.變成viSFP賺取收益發給viMGP，同時保有治理權

3.直接線性空投給viMGP

同時賠償金庫原先2700萬的負債將減去750萬，賠償金庫將僅剩於1950萬美元的債務。

可以滿足LP受災戶急需用錢的需求，可以降低長期MGP/PNP收益的補償比例，我們也成功地透過SFP的機制進行了第一次實質的賠付。

他可以平衡原有SFP的賠償機制，讓用戶有更多的選擇。

以上協助賠付的不限定於MGP DAO，他可以是PENPIE/CAKEPIE/PENDLE 甚至於可以是V神。

而對方在進行賠償的同時也可以獲得未來協議的治理權，獲得未來幣圈創新的保險協議的治理權。

[0xjo]

According to KSL’s proposal

Penpie incident Overview and Request for Compensation Suggestions

Penpie Recovery Plan This is the recovery plan I drafted based on discussions and ideas from the TG Chinese community. The docs link: English docs 中文 docs It is quite lengthy, so here is the TL;DR version: 1. What Happens to LP (Liquidity Providers) Compensation through SAFUPIE: LPs who suffered asset losses in the hack will receive compensation in the form of credits (SFC). These credits can be used to receive SFP tokens or be sold on the market. Claim Process: LPs can apply for co…

KSL and I suggested adding a new set of mechanisms within the framework of this proposal.

This mechanism can also meet the compensation needs of MT to a certain extent.

We calculate the following compensation units in USD

(Any ratio can be adjusted)

We propose applying for funds for special compensation from several options:

1.MGP Treasury

2. The team’s locked MGP

3. Team private compensation

4.PNP Treasury

Apply for compensation of approximately 10-30% of the total liability

Approximately 2.7 million-8.1 million USD equivalent tokens

Assuming 30 million $MGP will be utilized from the MGP DAO treasury

Compensation will be made at the market price of US$0.1 per pill, which is US$3 million.

Establish a short-term independent compensation mechanism

Debt users can apply for compensation at a rate equivalent to 40% within the time limit.

Assuming that all is eventually redeemed

Debt worth 300/0.4= $7.5 million US dollars will be recovered

SFP will provide 2.5 million SFP to MGP DAO at a ratio of 3:1

MGP DAO can have several operating directions

1.IDO (burn the MGP or return the MGP to the treasury)

2. Become viSFP to earn income and send it to viMGP while retaining governance rights.

3. Direct linear airdrop to viMGP

At the same time, the original liability of 27 million US dollars in the compensation treasury will be reduced by 7.5 million, leaving only a debt of 19.5 million US dollars in the compensation treasury.

Thus satisfying the urgent liquidity needs of those affected LP stakeholders, and reducing the comensation ratio of long-term MGP/PNP income. Further, we will enable the first substantial compensation payment through the SFP mechanism.

The aforementioned assistance in compensation is not limited to MGP DAO, it can be PENPIE/CAKEPIE/PENDLE or even Vitalik.

While making compensation, the other party can also obtain the governance rights of the future agreement and the governance rights of the innovative insurance agreement in the Cryptocurrency industry.

根據KSL的提案

Penpie incident Overview and Request for Compensation Suggestions

Penpie Recovery Plan This is the recovery plan I drafted based on discussions and ideas from the TG Chinese community. The docs link: English docs 中文 docs It is quite lengthy, so here is the TL;DR version: 1. What Happens to LP (Liquidity Providers) Compensation through SAFUPIE: LPs who suffered asset losses in the hack will receive compensation in the form of credits (SFC). These credits can be used to receive SFP tokens or be sold on the market. Claim Process: LPs can apply for co…

我與KSL建議在該提案的框架下補充一套新的機制。
該機制也一定程度上能滿足MT的賠付需求。

以下賠付單位我們都以USD計算
(任何的比例都可以進行調整)

我們提議從以下幾個選項中申請資金進行特殊賠付
1.MGP金庫
2.團隊鎖倉MGP
3.團隊私人賠償
4.PNP金庫
申請大約10-30%的負債總額進行賠償
大約為270萬-810萬美元等值的代幣

假設從MGP DAO金庫申請3000萬MGP
以市場價格每顆 0.1美元，也就是300萬美元的金額進行賠付
建立一個短期限期的獨立賠償機制
債權用戶可以於限期內以相當於40%的比例申請賠償
假設最終全數兌換完畢
將可以回收 300/0.4=750萬美元的債權

SFP將按照3:1的比例將250萬顆SFP提供給MGP DAO
MGP DAO可以有幾個操作方向
1.IDO (燒毀MGP或者MGP重新返回金庫)
2.變成viSFP賺取收益發給viMGP，同時保有治理權
3.直接線性空投給viMGP

同時賠償金庫原先2700萬的負債將減去750萬，賠償金庫將僅剩於1950萬美元的債務。

可以滿足LP受災戶急需用錢的需求，可以降低長期MGP/PNP收益的補償比例，我們也成功地透過SFP的機制進行了第一次實質的賠付。
他可以平衡原有SFP的賠償機制，讓用戶有更多的選擇。

以上協助賠付的不限定於MGP DAO，他可以是PENPIE/CAKEPIE/PENDLE 甚至於可以是V神。
而對方在進行賠償的同時也可以獲得未來協議的治理權，獲得未來幣圈創新的保險協議的治理權。

[Chester_Lin]

支持該提議，我們將讓受損的用戶有更多的選擇，同時適度的減少負債總額，有助於我們100%且加速償還願意為了MGP犧牲，而選擇支持SFP長期賠償計畫的忠實用戶。

同時該計劃雖然會使得MGP/PNP DAO支付國庫中的MGP/PNP,但相應的也可以獲得相對數量的SFP代幣，雖然犧牲了短期的利益，但大大提升了未來MGP ECO的安全性。

[svenlul]

This is the best and clearest proposal Ive seen so far!
Looking at a long time horizon, to maintain penpie revenue, while (hopefully) being able to pay back the victims over time.

[2017rugpullvet]

I’ve read this over and over a number of times now and I think this is the right way forward. Massive thank you to @DefiWhale for the granular details. I’d strongly encourage the community to consider this proposal seriously and vote in support. I will be.

[Shrimpie]

Great proposal DefiWhale!

I like this proposal and will vote in favour of it because:

• This proposal aligns the incentives of all three stakeholder groups (1. the Magpie team, 2. MGP/mPENDLE holders, 3. LP holders affected by the hack) with that of the Magpie ecosystem. Due to different aspects of the proposed plan, each of these stakeholders would benefit greatly from a thriving Magpie ecosystem. Without this alignment of incentives, we could end up in an untenable situation where one group benefits from the dissolution/destruction of the Magpie ecosystem, leaving the majority worse off.

• I initially believed that other subDAOs should also contribute directly to affected users. This view is shared in other proposals floated in this forum. However, I have changed my mind; these other subDAOs are already contributing to the Magpie ecosystem via vlMGP, and Defiwhale’s proposal to take a minority of these transfers is a much more sustainable solution than asking the other subDAOs to contribute directly.

• Another advantage of this proposal is that it strikes a good balance between the need to compensate those affected and the need to ensure that the ecosystem remains healthy. Personally, as someone who is affected, I would not mind a higher protocol revenue impact than 12.8%. But this proposal should also benefit those who are not affected, and i can live with this.

Finally, I would like to speak out against other proposals to create yet another subDAO targeting the insurance business. I believe that the Magpie team should focus on the products it already has at this time and not create new subDAOs. I appreciate the current focus on security and the commitment to multiple audits before reopening the protocol. This security mindset should be extended to the other SubDAOs, to ensure the community’s confidence that there will not be another hack. The creation of new SubDAOs should be put on hold.

Kind regards,
Shrimpie

[0xjo]

test.
See if the dead line works

[0xjo]

不認為要求MGP賠償5000萬MGP TOKEN是個明智的選擇，目前viMGP約為 1億八千萬，5000萬MGP占比約 （5000/23000）21%，這將會讓MGP ECO變得非常危險，將變得極度中心化，LP受害者將可以直接掌控未來MGP的所有資源。
此外我們不是加害者，你們不應要求110%的賠償，這是非常不道德的一件事。

I don’t think it is a wise choice to ask MGP to compensate 50 million MGP TOKEN. Currently, viMGP is about 180 million, and 50 million MGP accounts for about (5000/23000) 21%. This will make MGP ECO very dangerous. Becoming extremely centralized, LP victims will be able to directly control all future MGP resources.
In addition, we are not the perpetrators, and you should not ask for 110% compensation. This is a very unethical thing.

[Magpiefan]

I think that @DefiWhale’s proposal is probably the best i’ve seen till now. Although it’s really putting the hopes of the LPers in Penpie being alive in 6 years (contest: 6 years ago we didn’t have curve or aave, not even the white papers), it’s the only thing that wouldn’t impact the Subdaos.

I think that having such a long term repayment plan isn’t optimal, 6 years is quite a large amount of time. At least, who takes an impact is more the team, responsible for the hack, than the investors.

Therefore, unless something much better in terms of recovery time comes out, i will vote this one with my vitokens.

(Hopes on recovery something from the hacker would make our life much easier…)