Category: Recovery Phase
Scope: Use treasury BADGER to restore governance tokens to those affected by the exploit. This will require ~192,713 BADGER.
Status: Pending
Objective:
Obtain approval to use treasury BADGER to restore governance tokens to those affected by the exploit
Overview:
The DAO holds enough BADGER to restore governance tokens to those affected by the December 2nd exploit (more info). This BIP would rectify governance tokens separately from other losses, such as BTC relates tokens. This would enable affected users to regain their vote weight to use in upcoming proposals.
Community Discussion rff: Badger
Specifics:
BIP 76, BIP 77 and BIP 78 have been or will be voted on using current holdings. Users that lost BADGER in the exploit have not been able to vote with the same vote weight they held pre-exploit. Immediately restoring BADGER to those that lost it will allow the governance process to move forward as usual including exploit victims.
4 tokens specifically can participate in governance decisions
- BADGER
- bBADGER (deposited BADGER)
- BADGER/WBTC Sushiswap LP token
- BADGER/WBTC Uniswap LP token
Only the BADGER portion of the Sushiswap or Uniswap LP tokens hold vote weight and will be restored, the other side of the LP will be handled in the “other” token restitution efforts outlined in future BIPs.
The below table outlines how many of the four governance assets were stolen in this exploit, along with their $$ value as of December 2nd and total number of users for each.
| symbol | amount of tokens | underlying BADGER | amount of victims | USD value of BADGER |
|---|---|---|---|---|
| BADGER | 4014.34275471 | 4014.34275471 | 1 | $89,704 |
| bBADGER | 130028.20049196 | 160569.44397117 | 9 | $3,585,516 |
| bSlpBadgerWbtc | 0.00119849 | 28071.55892335 | 1 | $1,384,212 |
| ulpWbtcBadger | 0.00044879 | 57.97074749 | 1 | $121,321 |
| Total | 192713.31639672 | 12 | $5,180,753 |
A full breakdown on a per victim address basis can be found in the technical post mortem spreadsheet (under “governance per victim”): assets_stolen_recoverable
Implementation:
There are 12 governance asset holders affected in this exploit that would want to participate in voting along with the rest of the community on remediation efforts since they are part of the group most affected.
This proposal is to restore governance assets to those previous holders who were affected by using a total of 192.7k Badger from the treasury, in order to enable them to participate in governance decisions as part of the overall remediation efforts.
Rectifying BADGER and bBADGER assets would require 0.78% of the total BADGER supply. Rectifying the underlying BADGER in the LP tokens, based on their composition at the time of the exploit, would require an additional 0.13%, totaling to 0.91% of total supply. This is ~2.5% of the BADGER currently held by the treasury (including uncirculating, not including BADGER already earmarked for future use).
Vote:
- Yes
- No
0 voters