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.
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.
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.
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.
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.
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.
Q1/Q2 of 2023
Implementation cost is negligible.