AIP-221: Resubmission: Request to make Bored.eth whole from Rari Hack and frozen collateral

Live AIPs
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Original Proposal
AIP-99: Rescue Rari Hack Victims with frozen Apecoin collateral in Fuse Protocol](AIP-99: Rescue Rari Hack Victims with frozen Apecoin collateral in Fuse Protocol

Reason for Return
The Special Council cited concerns about not knowing the recipients of the designated wallets meant to be made whole.

Resubmission Updates
The original submission sought to make ALL Rari Hack victims whole. Because it would be nearly impossible to KYC and confirm owners of wallets of all victims, the Special Council sent this proposal back for resubmission. The primary change to this proposal is focusing the request on compensation for the proposer, Bored.eth, with the goal of other victims to follow in suit over time.

Abstract
Two or three sentences that summarize the proposal.
Because the Rari Hack resulted in the draining of reserves, all loans are underwater and users are no longer able to withdraw funds from loaned funds due to no fault of the author. Given that reality, the proposal seeks to rescue author with 39,170 Apecoin, the amount currently frozen in the Rari Fuse system.

Author Description (mandatory if the AIP is requesting funds) | A brief background of yourself
Bored.eth is a recent top 10 candidate for the Apecoin Special Council, Ape Owners, and heavy contributor to the Web3 ecosystem. He is most commonly known from his large presence on Twitter via the @boredelonmusk account.

Motivation
This relatively low cost action would help deploy Apecoin treasury reserves in a meaningful way that would create significant goodwill for the community and generate positive PR around the strength of the DAO. There have been very few hacks in the Apecoin ecosystem that were not caused by user error, because victims of this particular incident lost funds due to no fault of their own, the hope is that community helps to make a community member whole, and to encourage other victims to come forward with similar proposals.

Rationale
It is important for Apecoin to be held and deployed by active members of the community. Putting these tokens back into the hands of an active community members provides an opportunity for further growth of the Apecoin ecosystem.

Specifications
In April 2022, DeFi Lender Rari Capital/Fei Lost $80M in a Hack, with various assets including ETH, FEI, FRAX, RAI, DAI, USDC, LUSD, wstETH, USTw, WETH, USDT being drained from collateral pools. With borrowing frozen, victims have not been able to withdraw their collateralized Apecoin from Fuse pools. More details and public record: [DeFi Lender Rari Capital/Fei Loses $80M in Hack DeFi Lender Rari Capital/Fei Loses $80M in Hack
One of the “Fuse” pools within the Rari Platform which allowed collateralization of ApeCoin, Pool 127, was among the many that were compromised: https://app.rari.capital/fuse/pool/127

Steps to Implement
1. Upon successful vote to move forward, an accounting of frozen Apecoin collateral is provided to Foundation, confirming wallet address amount of frozen Apecoin.
2. Funds will be dispersed promptly to hack victim via appropriate Multisig wallet.

Timeline
Q1/Q2 of 2023

Overall Cost
Implementation cost is negligible.

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First off I’m disgusted that happened and that you were a victim of the hack. I agree that you could not predict the hack on Rari, but why would the DAO have to take accountability? When we stake in a protocol we do it with possibile risks involved. If anyone is to take accountability that could be the Rari platform itself not the Apecoin DAO or the Foundation imo.

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Thanks @Moonlyght for the comment. I want to be clear that the Apecoin community is in no way being asked to take accountability for the hack. This was completely on the Rari team.

The request for a “rescue” is asking the DAO to essentially donate funds to make whole victims of a situation that its members were impacted by. My hope is that this is seen as a marketing/PR opportunity to show the strength of the DAO.

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Heart goes out to all those concerned, makes sense to do good where and when we can under the right conditions, but I also understand the SC’s concerns ofc.

I think this is an admirable cause, wish you all the best with it and hope you can find a way to reconcile the concerns of SC.

I do have one question - if the funds were paid by the DAO and later the funds were unlocked by Rari, how would that play out or is it not possible etc etc.

Thanks

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Good question. The DAO has been dissolved so funds coming from them is unfortunately impossible. The protocol does still allow for repayment of loans but they are all underwater and thus repayment will not happen. The only scenario where the loans would be payed back (potentially) is if $Ape were to sink to less than a dollar in price (unlikely). That said, I would be happy to amend the proposal to include a repayment (or donation to charity) of the funds if they were somehow unlocked. Honestly I would put the likelihood of that happening at .01%

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Thank you for the detailed answer. I hope the community agrees that this is a worthy cause and we get the help rolled-out asap. GL. Many thanks

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This topic was automatically closed after 7 days. New replies are no longer allowed.

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Hello @boredelon,

Your topic will be closed soon. Are you content with the feedback received, or do you wish to extend community discussion for a further 7 days?

If we do not hear from you within 24 hours, your topic will be moved straight to the AIP Draft process.

Best,
-mallard

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Ready to move forward thank you.

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Hello everyone,

Thank you for your idea and discussion. A moderator will get in touch with the author to draft the AIP in the appropriate template. Once the AIP is drafted and meets all the DAO-approved guidelines, the proposal will be posted on Snapshot for live official voting at: Snapshot

Follow this Topic as further updates will be posted here in the comments. @boredelon please see your messages for the next steps.

Best,
-mallard

1 Like
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Hello everyone,

@boredelon has completed editing their AIP Idea to be their AIP Draft.

Will keep the community updated accordingly.

Best,
-mallard

1 Like
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Hi ApeCoin DAO Community,

Our team has reviewed and discussed @boredelon’s AIP Draft and have sent a list of initial questions. We await answers.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-Pearson

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Confirming I have responded.

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Hi ApeCoin DAO Community,

@boredelon has responded to our questions and they are in our review once again.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-Pearson

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Hi ApeCoin DAO Community,

We have sent a list of follow up questions to the author

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

@Lost.Admin

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Hi ApeCoin DAO Community,

@boredelon has responded to our questions and they are in our review once again.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

@Lost.Admin

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Hi ApeCoin DAO Community,

In responding to our questions, @boredelon has provided consent to share the content in this forum for the community.

A DAR package is being completed, upon which this AIP will move into Administrative Review. Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

@Lost.Admin

Questions (Click to open)
  1. Are there any potential legal risks associated with the activities of this AIP?

Answer:

I do not foresee any legal issues or risks associated with this proposal.

  1. Will you please provide background information on yourself which highlights your ability to complete the tasks set out in this proposal? Please provide substantial support to your response, and examples if possible.

Answer:

I am a long-time supported of the Yuga ecosystem and BAYC, as well as a veteran user of crypto in general. This is a fairly simple AIP which doesn’t include significant executional needs.

  1. Is the Ape Foundation expected to engage in any of the steps of the AIP implementation? If so, please specify the step and elaborate how it is expected to work.

Answer:

No

  1. Please elaborate on the your expectations for the future.

Answer:

If this AIP proves successful, it can serve as a potential framework for others to receive one-off support from the Apecoin Foundation.

  1. Have you identified any additional financial, operational, or brand risks associated with this AIP?

Answer:

No.

  1. Have you received, or were you eligible for, any reimbursements, compensation, donations, tokens, or any other forms of payment as a result of “hack”? If you were eligible for any reimbursements, what prevented you from receiving or claiming them?

Answer:

No. Unfortunately I was not eligible to recoup any funds from associated parties. Nor have I received any donations or makegoods because of the hack. Nor do I think that will ever change.

  1. Do you provide consent to share these questions with the community in this forum?

Answer:

Yes

1 Like
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Hi ApeCoin DAO Community,

We have no further questions for @boredelon. This AIP is now under Administrative Review.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

@Lost.Admin

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Not sure why you would request a solo proposal reimbursement when a lot of us had lost a ton of apecoin stuck in Rari as well. You know who we are.

I myself lost around 30,000 apecoin in the Rari hack, and received 0 restitution from the hack because you were faster than me at withdrawing all the deposited ape that was put back into the pool as part of the initial restitution money.

You didn’t even try to reach out to me or anyone else in the REV discord about this AIP, knowing full well that I was another large uncompensated victim, probably because you felt that the more you reached out to the other victims, the cost of the proposal would inflate, making it more unpalatable to voters.

The DAO should be doing what is best for the community. The fact that you made this proposal about you, without consulting the other victims just shows that you are out for #1, and don’t give a damn about the community.

That said, even if my 30k was included in this proposal, I’d vote it down. It isn’t ApecoinDAO’s responsibility to offer me a bailout. I lost $500k+ because I put my money in a protocol ran by a bunch of 14 year olds and I paid the price. So should you. This is a real slap in the face, given that I voted for you for council.