TIP-112: Fuse Repayment Next Steps

Summary

Whitelist the “Fuse Repayment Contract” as a safe PCV address for the Tribal Council or PCV Guardian to repay.

Proposal

The community has signaled support for a PCV repayment of the Fuse exploit here. This proposal provides some technical details and associated timelines.

First, the strategy for repayment will be staged by asset. The affected assets are

token │ amount stolen │ amount stolen usd

─────────┼─────────────────┼─────────────────────

FEI │ 20,251,603.12 │ $20,361,973.83

ETH │ 6,037.91 │ $17,062,057.88

DAI │ 14,278,990.68 │ $14,368,248.93

LUSD │ 1,948,952.18 │ $1,952,277.46

USDC │ 10,055,556.33 │ $10,019,382.03

FRAX │ 13,101,364.94 │ $13,108,022.66

RAI │ 31,615.87 │ $96,475.12

USDT │ 132,959.90 │ $133,620.54

Repayment order will be assets currently in PCV first (RAI, DAI, FEI, ETH, LUSD), then external assets after associated conversions (USDC, USDT, FRAX). Both categories will be sorted by the smallest repayment amount first. A special case is USTw, where the only supplier was Terraform Labs and the strategy will await further clarity from them.

For assets currently in PCV, the capital will be sourced from the most liquid deposit of that type, for example ETH would come from the Aave ETH deposit given it holds the most ETH.

The proposal simply whitelists the repayment contract as a safe address for new PCV to be transferred in by the Tribal council or PCV Guardian to repay. If any tokens remain in the contract after repayment, they can be withdrawn back into PCV.

In terms of timelines, it would take 1-2 days to repay assets in PCV, and up to a week to source the non PCV assets from proposal execution.

This proposal follows the Tribal Council process, and is currently staged for signing in the Tribal Council Timelock. Once proposed by Tribal Council, the code will then have a 4 day timelock where it is subject to veto by the Nope DAO. Learn more about the Nope DAO here.

Veto Details

Proposal id = 0xe1d6d214480d4b634e445682b1278e7649c0cb7f9b9d6d4a121c25d8bcbd8f21

Execution timestamp = Jun-07-2022 09:21:53 PM +UTC

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