PIP to reimburse hacked pDAI

Currently Pickle has a 27.5% performance fee. 20% goes to treasury, 7.5% goes to devs.

This PIP proposes to:

  1. Create a reimbursement token for pDAI at the precise block snapshot before the hack.

  2. Adjust the performance fee ratios to the following:

5% to devs
15% to treasury
7.5% to reimbursing pDAI

Lasting until pDAI is fully reimbursed the 19,759,355 DAI. Then go back to 7.5% to devs, 20% to treasury.

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This is a good initiative to start the conversation. I think we can use a poll, give options besides full reimbursement (e.g. 25, 50, 75), and/or the option of a sunset provision (e.g. 1 year). We may need to use some percentage of either treasury or devs or 50-50 to procure some insurance for the protocol going forward.

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sounds like a good initiative , it’s fair for everyone , it will make people whole the devs won’t loose as much and the treasury won’t be impacted a lot , but the project will have a brighter future and will attract more liquidity

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I believe it’s a good idea. I think however there is scope to increase performance fees overall a bit so that treasury stays a bit higher. Treasury ultimately becomes staking profits over the 500k cap so it’s important to keep this as high as possible.

maybe 30% performance allocated:
5% to devs
20% to treasury
5% to exploit reimbursement fund (which gets paid to devs once exploit debts are paid)

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Yes maybe don’t go back to original and create a risk management fund, which is used for future hacks or to be staked in an insurance contract (like NXM).
Maybe even adaptive. Like the higher the difference between TVL and coverage from fund/insurance the higher the percentage which goes towards risk management.

What do you guys think?

PS: I lost a lot :frowning:

That is also pretty reasonable

Thanks. Those are good ideas. There’s definitely a fine balance between too aggressively trying to reimburse and crippling the project, and too little where pDAI isn’t satisfied.

While this is an important conversation and I’m looking forward to seeing what other ideas are put forward, it’s important to remember that the team is still putting every possible effort into recovery of the lost funds.

Your suggestion is pretty close to what’s being passed around internally. There’s also the option to divert some amount of pickle emissions to a reimbursement fund as well. It will be a delicate balance no matter what we do–too aggressive and we won’t be able to incentivize new users, too low and it will take far too long to make a dent in the losses.

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Interesting idea to use some pickle emissions for the reimbursement. There can be a reimbursmentFarm that reimbursmentTokens can farm from until they are whole again. In that way the devs/treasury don’t take the hit (as least not directly).

Glad to hear a fragment of news from the “internal” group :zipper_mouth_face:

(sorry double-post I forgot to reply to yours)

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people have lost a lot of money ,is good to hear that there’s plans to help them… people need all the support they can get , and that most likely will be a positive things for pickle going forward and it will help attract more liquidity to the protocol

It’s really important that we manage expectations here. This hack was massive and efforts to reimburse funds cannot be so aggressive that they undermine our ability to regain our footing and grow. I’m fully in favor or a path towards reimbursement, but in all likelihood, it will be a long and slow process.

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20M is too huge. This won’t work. Assuming that we have 10M TVL with 10% profit strategy, it will take about 300 years to cover the 20M USD.

Yearly compensation = 10M x 10%(profit) x 7.5%(reimburse) = 75K
20M / 75K = 266 years.

This was only to open up a discussion on how to proceed.

If we are reimbursing, then we must want Pickle to succeed first and foremost. Can’t reimburse without Pickle’s success like your calculation proves.

What does “success” exactly mean? I think getting to Harvest/Yearn size and growing to >$1 billion TVL would be success.

Now do your calculation again. (2.6 years, 1.3 years for $2b TVL, etc.)

I’m embarrassed to even admit the obscene amount I’ve lost. As the saying goes, “if you play with fire you get burned”. I wouldn’t expect any reimbursement but I’d expect the devs & community to continue doing their best to make pickle a long term success.

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LOL locking this for <3 ing
sheeeat.

I think trying to reimburse from fees can become problematic because it will reduce the profitability of Pickle as a whole, which will impair its growth - and thus defeating the purpose.

How about a heavily timelocked emission of Pickle? Say, 20M worth of Pickle over, say, 10 years, with the amount adjusted periodically according to price.

(Full disclosure: I too lost some funds to this hack.)

If you’re going to say 10 years, you might as well say never. I lost money too, but I suppose my perspective is probably different than others who lost substantially more.

I feel like this is something we’re just going to have to wait to hear more from the core team. I wanted to believe it would be as simple as what Harvest is doing, but it likely won’t be.

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Not disagreeing with the core of your message, but I can’t help it but point out I said over 10 years not after 10 years :slight_smile:

Anyways, any compensation for our losses would come out of the benevolence of the devs and the community, so it has to be low impact to have any hope of gathering support.

I support this approach. There isn’t really another way to foster growth and compensate easily adopters who suffered loss without recovery.

Thus I am glad to hear that recovery is being prioritized.

It is too large at our current state. True. However, if we grow and implement best practices, we can be larger. Uniswap is currently greater than $1 Billion in TVL. So assuming they continue to grow and we grow, we can reach at least 100M TVL. This would be a 26 years. If the space truly explodes, then Pickle having a TVL of $1 Billion is feasible. Then we are talking 2.6 years.

In addition, we will have demonstrated social responsibility and ethical behavior that lays the foundation for this type of growth.

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