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 Web 3 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 $ 80 M 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 $ 80 M in Hack https://www.coindesk.com/business/ 2022 / 04 / 30 /defi-lender-rari-capitalfei-loses- 80 m-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
Q 1 /Q 2 of 2023
Overall Cost
Implementation cost is negligible.
The proposal aims to rescue victims of the Rari Hack by compensating the proposer, Bored.eth, with the frozen Apecoin collateral in the Fuse Protocol. The Special Council requested clarification on wallet recipients before, leading to a focus on compensating the proposer first, with the hope to extend the compensation to other victims over time. The action is seen as a low-cost way to deploy Apecoin treasury reserves and create goodwill within the community.
Moonlyght: boredelon:
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.
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.
boredelon:
Because the Rari Hack resulted in the draining of reserves, all loans are underwate…
boredelon:
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.
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.
Thanks @Moonlyght for the comment. I want to be clear that the Apecoin community is in no way being…
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.
Heart goes out to all those concerned, makes sense to do good where and when we can under the right…
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
Good question. The DAO has been dissolved so funds coming from them is unfortunately impossible. Th…
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 %
Thank you for the detailed answer. I hope the community agrees that this is a worthy cause and we g…
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
Hello @boredelon,
Your topic will be closed soon. Are you content with the feedback received, or do…
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
Hello everyone,
Thank you for your idea and discussion. A moderator will get in touch with the aut…
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
Hello everyone,
@boredelon has completed editing their AIP Idea to be their AIP Draft.
Will keep th…
Hello everyone,
@boredelon has completed editing their AIP Idea to be their AIP Draft.
Will keep the community updated accordingly.
Best,
-mallard
Hi ApeCoin DAO Community,
Our team has reviewed and discussed @boredelon’s AIP Draft and have sent …
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
Hi ApeCoin DAO Community,
@boredelon has responded to our questions and they are in our review once…
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
Lost.Admin - This user is a moderator, Facilitator
March 13, 2023, 10:54 a.m.
Hi ApeCoin DAO Community,
We have sent a list of follow up questions to the author
Follow this Topi…
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
Lost.Admin - This user is a moderator, Facilitator
March 13, 2023, 11:16 a.m.
Hi ApeCoin DAO Community,
@boredelon has responded to our questions and they are in our review once…
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
Lost.Admin - This user is a moderator, Facilitator
March 22, 2023, 2:54 a.m.
Hi ApeCoin DAO Community,
In responding to our questions, @boredelon has provided consent to share …
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)
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.
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.
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
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.
Have you identified any additional financial, operational, or brand risks associated with this AIP?
Answer:
No.
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.
Do you provide consent to share these questions with the community in this forum?
Answer:
Yes
Lost.Admin - This user is a moderator, Facilitator
March 26, 2023, 1:42 p.m.
Hi ApeCoin DAO Community,
We have no further questions for @boredelon. This AIP is now under Admini…
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
Not sure why you would request a solo proposal reimbursement when a lot of us had lost a ton of ape…
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 30 k was included in this proposal, I’d vote it down. It isn’t ApecoinDAO’s responsibility to offer me a bailout. I lost $ 500 k+ 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.
boredelon: @Feld
Most of the assumptions you’ve made are categorically wrong. Let me clarify for everyone else’s benefit since you’ve made up your mind based on false information.
I already attempted to propose an AIP that would reimburse ALL victims of the Rari hack who lost Apecoin. This was rejected by the SC because it would be too difficult to KYC all potential victims, a requirement for disbursing funds. They recommended resubmitting the proposal as a solo initiative, and that other victims could do the same should they choose.
My Apecoin deposit remains in Rari. I was unable to withdraw more than few thousand Ape, but the bulk of my deposit remains frozen just like yours (over 38,000 APE).
I spent months trying to work with other victims, and I was the only one who took the initiative to draft an AIP that attempted to get compensation for everyone. It went through the AIP “Ideas” and “Draft” stage so if you were an active member of this forum, you would have seen that. Again, because the AIP was not approved by the SC, I had to take another approach and do a solo submission, with the goal of setting an example for others to follow.
If you, or anyone else wants to talk about this in more depth. I’m happy to set up a call.
Gerry: His first AIP was specifically to make all victims whole.
