Hi everyone,
Here is a spreadsheet detailing the state of the PCV before & after the Fuse hack repayment :
For convenience, I also include a screenshot of the table below :
The table above is an instantaneous picture of the protocol yesterday evening. You can see fresh PCV stats on the official analytics page or on my unofficial fei-tools webapp. The bad debt amounts for each tokens is taken from the Rari hack report prepared by @storm. The amounts recovered if Fuse bad debt is cleared is the amount of tokens that are currently unrecoverable by the protocol (because markets have bad debt), but that will re-become part of the protocol if Fuse is taken back to a working state; these tokens have been removed from the protocol accounting (Collateralization Oracle) by this OA action mid may (tx).
As we can see, total cost to the Tribe DAO to repay users is around 33M$, and would decrease the stable backing of FEI (TIP-107, TIP-111) from 51% to 40% (around 27M$ of the Fuse bad debt is denominated in stablecoins). To keep the same percentage of stable backing, around 15,000 ETH would have to be sold at the current price (~11% of the DAO’s ETH holdings). The Protocol Equity would decrease by around 22% (33M$ spent on hack repayment, from the current PCV equity of 144M$). The collateral ratio of assets backing user-circulating FEI would drop from 162% to 149%.
Oddly enough, the amount of user-circulating FEI would decrease, because 20.3M FEI would be freshly minted to repay the bad debt, but over 22.7M FEI would re-become protocol-owned, because the protocol had provided FEI in Fuse pool 8 (20.8M), 18 (809k), and 27 (1.07M).
If the approach chosen is for the protocol to repay all bad debt in Fuse, the logistics for converting PCV (ETH/FEI/DAI/LUSD) into USDC/FRAX/USDT is not set in stone yet. To repay bad debt, a FuseFixer contract has been deployed.