Odaily Planet Daily News The official team of the Resupply Protocol launched a remedial measures proposal in the community, which mentioned: It suffered a bad debt of 10 million ReUSD when it was hacked earlier this week. The attack and technical details are beyond the scope of this document, but can be found here. The stolen funds are still on the chain. The situation is being monitored and necessary steps are being taken.
This document outlines a set of proposed governance actions to eliminate protocol bad debts and provide retention rewards to affected users.
Phase 1: Immediate governance action:
Insurance pool (IP) token destruction:
At the time of writing, the total outstanding bad debt is 7,131,168 reUSD after the Resupply Protocol Treasury, Convex Treasury and C2tP have paid 2,868,832 reUSD.
The proposal specifically states:
1.6,000,000 ReUSD of bad debt will be burned through the insurance pool, accounting for 15.5% of the 38.7 million reUSD in the insurance pool.
2. The protocol will process ongoing bad debts to reduce the amount owed by the insurance pool. In total, this is $4 million less than the amount of bad debt initially owed by the insurance pool.
3. The remaining bad debt ($1,131,168) will be repaid through a mix of future revenue sources, such as but not limited to protocol fees and/or potential RSUP over-the-counter sales plans, which will be decided later in the finance or governance department.
IP Withdrawal Period:
1. The authorities are making every effort to shorten the mandatory lock-up period of user funds in the insurance pool. To this end, the time for voters to vote on this proposal will be shortened to 3 days for the updated Resupply.
2. By utilizing a shorter voting window, the DAO can make a quick on-chain decision on this proposal for the benefit of depositors and reach a final resolution within the initial 7-day IP cooldown period.
3. The DAO may choose to extend the regular voting period to 7 days after the close of this proposal, or explore other options such as different voting times for standard and emergency votes.
Phase 2: Insurance Pool Retention Program:
Overview:
The IP Retention Program applies to users who are insurance pool depositors at the time of this proposal and are slashed in Phase 1 above. It is not intended to offset slashing, although it may or may not do so; rather, it is intended to incentivize remaining in the insurance pool after slashing through additional streaming RSUP tokens. Opting in is the default option, but users can opt out at any time if they decide not to participate.
Opting out will distribute the additional inflow of RSUP shares to the remaining shares. This program requires the deployment of a contract, which will be enacted at a later date once the contract has been reviewed and deployed.
Project Revenue Sources:
A dedicated RSUP release sink will be created for the retention program.
If passed, the proposal commits the DAO to distributing a total of 2.5 million RSUP to recipients over 52 weeks. The vast majority of this will come from RSUP grants from the Treasury.
The tentative release period is the next 12 months.
Note: The treasury “before” amount includes 541,851 accumulated/unclaimed treasury RSUPs. 25% of borrowed emission goes to the retention program, the rest comes from the treasury.
Target: Before the plan to lend 2,875,000; After the plan to lend 2,156,250; Before the treasury had 2,641,851 tokens; After the treasury token count is reduced to 860,601 tokens.
The insurance pool will be slashed by 6 million reUSD, and the DAO will assume the remaining bad debt.
The slashing proposal will be implemented within three days of the governance vote being published. A retention program for slashed insurance pool participants will be enacted in the future.