Usage of the funds earned during PJar Outtage

Context:

During the PIP8 incident the correct allocation of yield earned by stakers in PJars was not possible. The underlying strategies (dumping UNI, CRV and SNX) were executed nonetheless. The result of this is the allocation of the proceeds from these strategies to the pickle treasury as announced in this discord announcment.
The exact numbers of tokens can be found here.
The tokens are worth about $232,000 at the time of writing.

There is a fractional amount in these funds that come from people trying to make use of the PIP8 incident by continuing to deposit funds by directly calling the smart contract in an attempt to gain Ptokens in a disproportional manner.

Problem

The funds rightfully belong to the participants of the Pjars at that time. They were promised yield and didn’t receive any.

Proposed solution

Determine a way to distribute the earned interest to the PJar participants of that time.

Reasoning

I think this is the only honest and upstanding way going forward with this issue. It frontruns any depiction of this event being an unfair situation to some and is IMO in the interest of all stakeholders to this project.
While I certainly think that this would be a nice kickstart to the treasury I think it’s in the best interest for the project to redistribute the funds.

closing words

I take no personal gains in this, I have only ever been in Pool 2.
The reason why I raise this problem is one of depiction and values, this is IMO a true move of value and shows that pickle customers will always receive Class A service.

I hope we can vote on this issue rather soon and hope all pickle holders understand that even if they have not been affected by this personally it would shine a bright light on the pickle project.

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@0xBoxer Thanks for starting this discussion. I totally agree with your post. The deal the pJar holders signed up for is they will receive the UNI yield, and they pay the 0.5% admin fee. I don’t think it is fair to remove the UNI yield during the outage, while still having them pay the 0.5% on withdraw. If we want to change the terms of deal, it needs to announced beforehand, not after the fact.

I whole-heartedly agree and I’ve also only ever been a Pool2 user. Distribute the funds to the pJar peeps.

This makes sense and I largely agree, but the question is how. The logistics of assigning the proper amount to the right people is a complex issue. If a community member can create a script/methodology to calculate a fair distribution, I would totally be behind it.

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I agree with the spirit of this post. I worry a little about the language around “promised yield” though. I think it’s much cleaner if we all approach this space w/ the expectation that nothing is really “promised”. *Note: I did have a pretty large chunk of change in psCRV during this process so I would stand to benefit financially if reparations are made.

With that semantic disagreement out of the way, it totally makes sense that if there’s a way to rectify this, it should be done.

Is there any way to use the same snapshot from our pToken claims process to reverse engineer distribution? Even if it wasn’t exact, we could use these claims to determine what portion of what pool each wallet had, and assign a proportionate amount of the returns to each of them.

I may be over simplifying this and it may be far more complex than I’m leading on but this seems like it could be the starting point…

jjdubs

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Regarding the methodology for calculating the distribution, I suggest using the output files in the saviour-scripts/output folder.

Let’s take the UNIDAI Jar as an example. From the file interest.txt , we see a total of 414.4192 UNIDAI tokens need to be distributed. We can then take the data from the file uni_eth_dai.json , and distribute the 414.4192 tokens pro-rata to each of the wallet address. The distribution ratio for each wallet is the wallet’s LP entitlement amount divided by the sum of all LP entitlements in the uni_eth_dai.json file.

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