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MIP-014: Curve LP Remediation #14

Open green-jeff opened 12 months ago

green-jeff commented 12 months ago

MIP 014: Curve LP Remediation

Summary

Proposal to return 100% of repatriated ETH and msETH to affected LPers in proportion to original balances.

Motivation

Prior to the exploit on July 30th, there was 1395.56 of msETH and 867.25 ETH in the Curve liquidity pool. Over the past 3 weeks, the Metronome core team has been working to recapture these funds for liquidity providers. As of August 28th, approximately 1828 ETH and msETH have been successfully recaptured. This represents roughly 81% of all funds in the pool prior to the exploit.

The Metronome core team continues to pursue all parties responsible for the remaining outstanding funds, and additionally is supportive of Curve's efforts in remediation. This proposal intends to return funds to LPers pro-rata based on the liquidity provider's percentage of the pool at Ethereum Block #17806551.

For more detailed information on the Curve exploit, please refer to the Metronome Post Mortem.

Specifications

The recovered funds were used to set up a msETH-WETH pool where LPs who were affected will be able to claim a pro-rata share via a Merkle claim.

This claim will be made in LP tokens for the new msETH-WETH Curve Pool and aims to cover ~81% of the funds that LPs lost through the exploit. The MetronomeDAO will continue to work on getting LPs as whole as possible.

The claiming process will look like:

  1. Visit https://pure.finance/merkle-claims

  2. Connect your wallet

  3. Input the ClaimID number a. This ClaimID number will be publicized following this MIP's approval.

  4. Confirm the transaction

  5. Claim your LP tokens

Note that additional MIPs will be needed in the event that additional funds are recovered in the future.

Reclaiming logic: https://docs.google.com/spreadsheets/d/1IxbYkD_heoFF0TQ1QT9-pC0_ND1_YGoByPNx4lX0U9A/edit?usp=sharing