BIP 98: Restitution Request for Badger Bridge Lost Funds
Category: Governance (Community)
Proposal Summary
This is a request for community feedback to on a proposal to provide restitution for 2 users who lost funds when using the Badger Bridge.
Losses and proposed restitution:
- User 1 Lost 17 BTC. The user has agreed to accept a settlement of 50% of 17 BTC in the form of BADGER tokens at the current USD exchange rate which is ~$163,000.
- User 2 lost .086 BTC. This proposal is to provide 100% restitution to the user in the form of BADGER tokens at the current USD exchange rate which is $1,650.
TL;DR;
The Badger Bridge was built on top of Ren’s core tech stack similar to the https://bridge.renproject.io/. The Badger implementation was created and managed by Polymer Labs with Badger DAO support. Polymer created, maintained and upgraded bridge contracts and Badger DAO provided additional testing and front end support.
Badger, Ren and Polymer Labs each received about 20 BTC in revenue from the Bridge during its lifetime. ,
The circumstances to which these funds were lost required a very unique set of interactions by the user with the bridge contracts. As a result native BTC was deposited & the users were unable to retrieve the equivalent BTC on Ethereum.
Upon review post incident by Badger, Polymer and Ren teams, due to inadequate documentation by the Ren team and poor contract implementation by the Polymer Labs team, this issue occurred for both users. Ren could have recovered the BTC but because the users had certain privacy settings in place while using the bridge, they were unable to retrieve the lost BTC.
Shortly after the incident Badger Bridge was moved to maintenance mode, access to users was restricted and Badger took over full management from Polymer Labs.
Ren and Polymer have declined to accept any financial responsibility for the loss.
- Yes - Badger Should Provide the Proposed Restitution
- No - Badger Should Not Pay Restitution
0 voters