As we promised, we want to make sure that communication is at its highest level, and that we give you constant updates in regards to where we stand with the re-compensation details, the redeployment of Fragola and everything else going on.
First of all, we wanted to give you a quick breakdown of the addresses that have lost funds, as this affects our decision on the NFT side as well. 439 addresses have been affected by the hack, and 146 of these addresses have been actively LPing in more than just 1 pool.
As we can see from the chart below, 62% of addresses have lost less than $10,000, and 86% of addresses have lost less than $60,000. We are not making any conclusions about these amounts as we have expressed numerous times, it does not matter exactly how much these addresses have lost since we don’t know the overall portfolio construction of these people.
Fragola Product Update
Our devs have been incredibly hard-working over the past 5 days and we are really happy to say that the bug fix is in place, as well as some new security measures such as max withdrawal amounts and a few cool new features. You could consider this as a FragolaV2 so to say. We had calls with two auditing firms yesterday to finalize timelines, and we are putting the finishing touches on our Immunefi application. Thus, product-wise, we are at a really great point, and could not be more excited!
IronBank & ICE Stream
We have been discussing the loan details over with our friends at Cream, and we have agreed on the following terms:
- Collateral Factor of 75%.
- 80% as the LTV Ceiling.
- Once LTV breaks 85% the collateral would get liquidated to make the LTV fall back below the 80%.
We believe these values are fair for now, and they are always up for discussion once we have Fragola and Limone up and running. We are setting up a new Gnosis Multisig wallet in order to execute the borrow and receive loans. 2 million ICE will be used as collateral from the DAO; this is because we want to minimize the risk of liquidation. Cream is getting prepared to give out the loan right now, and hopefully, we can kickstart everything ASAP so that we can start repaying everyone with the $1million start.
Regarding the ICE stream, we are currently working on figuring out the best way to set up Sablier with so many addresses. We will kick off the streams the same time as Ironbank loans start.
NFT- Spirits and Berserkers
We have received an incredible amount of valuable feedback for our NFT idea! A lot of people loved the idea but were not big fans of the details. As we had said in the AMA and in the medium post, we were playing with an idea, nothing was set in stone, especially because we didn’t actually know what the average amount lost was, etc.
To reiterate, the aim of the NFT idea is to:
- Collect funds for the recompensation
- Create something cool and memorable for all people taking part in the innovative and risky space of DeFi
- Experiment with using NFTs in a different way within DeFi
- Bring the DeFi and NFT space a little closer together
So let’s dive into our new thoughts.
The Spirits: The spirits are here to give something back to the LPers who are true believers thus every LPer who lost funds will be getting a Spirit (max 439 of them). These Spirits are going to be shown with pride by them. The utility of the spirits is simple, if you stake the spirit on the platform, you can LP for free up to $3000 (total of $1,317,000 free LPing).
The Berserkers: There are 6,666 Berserkers, each time a hack occurs the project that was hacked could mint more Berserkers in relation to the amount that they have lost in funds. Meaning that Berserkers will constantly live on the more hacks or exploits exist.
Of these 6,666 Berserkers, 209 of them will be Popsicle Berserkers, the rest will be in the theme of all sorts of hacks and exploits such as Cream, Alpha Finance, Iron Finance, Yam Finance, The DAO, etc.
The 209 Popsicle Berserkers are in representation of the $20.9m that were lost. The utility of these, besides looking cool and being an awesome profile picture that shows you are headed to Valhalla, is that you can LP for free up to $4000 (A total of $836,000 of free LPing).
Bear in mind that the discount on Protocol fees will depend on the number of NFTs the user holds in their wallet. Let’s say the user owns 2 Spirits and 1 Berserker, then they will be able to avoid paying any protocol Fees up to $10000.
The other Berserkers may possibly be used as utility by other projects or will be used as a symbol of having been a part of those projects at such an early stage!
Alright so to answer a few questions I am sure that will be asked:
Why has the free LP amount dropped so much in comparison to the first proposal?
This is solely based on the majority of people having lost less than $10k. If the amount that the Spirits would get for free be higher than this amount, then they could sell it for more than they have actually lost. On the other hand, the people who have lost more money will have less of an effect if the free LP amount is $20k.
Why do Berserkers have a higher free LP amount?
The reason for this is that people need to buy the Berserkers. We are raising funds via them to pay LPers back. Thus, if the Berserkers would have a lower free LP amount than the Spirits, then people would bid on the Spirits, meaning the recompensation fund would not receive anything. Furthermore, Spirits get the NFT for free, users need to buy the Berserkers and, therefore, with this risk of pricing, it makes sense to give the Berserkers more free LPing amounts.
How will the actual sale work?
This still needs to be discussed. We are still thinking about whether it should be a normal mint situation, identical to what all other NFT projects have done so far, or if we should make a bonding curve sale etc.