Here is a suggested process for the upcoming snapshot for Rari hack repayment using 4 voting options described above. Each voting option corresponds to a different amount of funds being used to compensate hack victims. This post gives a general accounting method which could be used for each option.
The numbers in this post are subject to change due to market conditions, pending OTC trades, and community feedback. For these reasons the numbers in this post should NOT be taken as the final numbers.
The four options are:
- Repayment using the USD equivalent of 57.3M TRIBE, distributed evenly across victim’s addresses (“Initial proposal”)
- Repayment using the USD equivalent of 82.3M TRIBE and $4.6M USD of stablecoins, distributed evenly across victim’s addresses (“All Rari related assets”)
- Full repayment to all victims’ addresses
- No repayment
All payouts would be distributed as stablecoins. The reasons why these particular numbers are suggested can be found earlier in the discussions above.
The snapshot vote would begin on Tuesday at 4pm PT.
The snapshot would be structured as an Approval style vote, where each voter can choose multiple options. Whichever option has the highest aggregate approval would be considered the winner, with a 10M TRIBE quorum.
If the winning option is 1, 2, or 3, it can then advance to an on-chain DAO vote. The DAO vote would come after security audits (which began this week on frozen code) and final integration and UI testing, and be announced with at least 72 hour notice.
In options 1 and 2, the USD equivalent value of TRIBE is computed using its Intrinsic Value (IV), described above:
- Protocol Equity = (Total PCV) - (User Circulating FEI)
- TRIBE IV = (Protocol Equity) / (Circulating TRIBE)
The final numbers for the variables of “Total PCV”, “User Circulating FEI”, and “Circulating TRIBE” are still dependent on a number of fluctuating variables including pending OTC details, market movements, and community feedback. The variables are described below to the best of our knowledge, and the Tribe DAO would need to vote to confirm any final numbers.
Any assets and addresses not listed below are considered “user owned” for purposes of Fuse Hack Payment and Final Redemption. This accounting can be audited against historical governance proposals executed by the Tribe DAO & Fei Protocol.
Total PCV is nearly completely accounted for by the Fei Collateralization oracle contract deployed at address 0xff6f59333cfd8f4ebc14ad0a0e181a83e655d257 and visualized on https://fei-tools.com/#/CollateralizationOracle.
The additional variables not included in the Collateralization Oracle for PCV include:
User Circulating FEI
The user circulating FEI is also reported by the Fei Collateralization oracle contract deployed at address 0xff6f59333cfd8f4ebc14ad0a0e181a83e655d257 and visualized on https://fei-tools.com/#/CollateralizationOracle.
This number is mostly accurate except for 1M FEI should be subtracted, as this is the amount in the pending clawback from La Tribu LinearTokenTimelock | Address 0xdb02630ed4f4994414122894B5082dc6D88a4ED4 | Etherscan
Protocol equity is the difference between the total value of PCV and user circulating FEI. A 7-day average of this value ending at the timestamp 24 hours before a DAO vote can be used for final calculations. Any on-chain DAO vote would be announced with at least 72 hour notice.
This is the circulating TRIBE calculated as 1 billion total minus all DAO owned TRIBE. The complete accounting of DAO owned TRIBE is:
- 437,867,397.64 in Treasury (includes clawed back and returned funds from Rari)
- 88,909,000 TRIBE returned in TIP-120
- 3,178,502.22 TRIBE “burned” in deprecated Timelock: LinearTimelockedDelegator | Address 0x625cf6aa7dafb154f3eb6be87592110e30290dee | Etherscan
- 7,347,590.43 TRIBE from RGT peg exchanger
- 1,000,000 TRIBE pending clawback from La Tribu QuadraticTokenTimelock | Address 0x552b8A441E945D021D29ae58B6Ae3dE96da75A05 | Etherscan
- 2,733,170.4743 TRIBE in Tribal Council Timelock pending transfer to treasury: TimelockController | Address 0xe0C7DE94395B629860Cbb3c42995F300F56e6d7a | Etherscan
This puts the base circulating TRIBE at 458,964,339.24, after subtracting the above from the 1bn total.
Fuse Hack Payment Calculations
Bad Fuse debt is defined as the amount stolen by the hacker and is used to account hack victim damages. Bad Fuse debt can be computed using an average over the same 7-day range as used for protocol equity.
Here is an example calculation using the current numbers. These example numbers use a time range from 2022-08-24 to 2022-08-31. The final numbers that would be used on chain are subject to changes due to market conditions, pending OTC trades, and community feedback.
- Protocol Equity 7-day average = $148,817,118.73
- Circulating TRIBE = 458,964,339.24 TRIBE
- Pre-payment TRIBE IV is the protocol equity divided by the sum of circulating TRIBE and TRIBE used for repayment
- Bad Fuse debt 7-day average = $40,550,490.80
The above and below numbers are example calculations which would need to be recomputed before the DAO vote. Any of the factors described in this post could change these numbers, such as the fluctuations in market price. There could be other factors as well, despite best efforts to account for them all here. Users should do their own calculations.
Hack Victim Accounting
For each option, victims are paid as a function of how much bad debt they hold as of a snapshot block 24 hours before the DAO vote. Bad debt of each cToken is defined as the amount of the corresponding asset stolen by the hacker. Bad debt of each victim is computed using the amount of cTokens held in the victim’s address.
Hack victim accounting for options 3 and 4 is straightforward: victims are either fully repaid or not paid at all, respectively.
For options 1 and 2, payouts are evenly split across victim addresses, capped by the amount of damages for each victim. This results in a single max payout threshold, where victims falling below this threshold are fully repaid. Example computations based on current market data is provided in a spreadsheet below.
Since the initial proposal of this plan, some addresses have attempted to exploit this dynamic by splitting their cTokens across multiple addresses. These splits should not be respected, and they can be treated as if they never occurred. Additionally, there are some victim addresses that have already received hack compensation from Nexus Mutual totaling more than $5,000,000   . These addresses would not receive additional compensation from the Tribe DAO under any of the four voting options.
Pending governance approval, any smart contract addresses which are Gnosis safes will have funds sent directly to the safes. Known DAO’s can coordinate with the Tribe DAO to come up with a suitable address for funds to be sent to.
These numbers are subject to change due to market conditions, pending OTC trades, and community feedback.
Here is a spreadsheet of the current bad debt held by each victim address, as well as repayment thresholds.