Latest Update (September 30)
The vote on compensation plan has ended, with a total of 143 users voting, out of 466 eligible voters. 68% of these users chose “ token as they are”, we hear the community’s voice, and will compensate users in the form of “token as they are”.
We will start to implement the compensation plan while relaunching Vee.Finance platform next week. A compensation pool dedicated to pay out depositors who suffered losses will be created. Inside the pool will be five tokens AVAX, WBTC, WETH, LINK and USDT, and users can withdraw funds at any time according to their share. The funds in the pool are accumulated from these sources:
a) Recovered stolen funds. We will do our best to recover the stolen funds, and we currently have the key clues to identify the hacker and have submitted them to the authorities. Once the funds are recovered, we will immediately credit it to the compensation pool.
b) Platform revenue. We will credit the entire month’s earnings of the platform to the compensation pool at the end of each month. The first deposit will be on October 31, 2021, EST.
Shares that can be withdrawn by a single user = net loss / net loss of all users.
Net loss = supply balance — borrow balance — accrued interest on borrow balance
Example, if there is $1 million in the compensation pool in October and a user’s withdrawable share is 1%, the share he would withdraw is $10,000. When there are new funds in the compensation pool, the user can then continue to withdraw funds according to his share.
In addition, if the user’s borrow token is part of the supply token, and the supply balance is greater than the borrow balance, which means, the balance of each token is positive, the compensation will be based on the net balance of each token.
If the user has a negative net balance in a certain token, this part of the debt will be deducted from the token with the largest supply amount. The exchange price is based on the snapshot taken on the day of the first payment.
Once we relaunch the platform, the current Crypto and Stable Pool will be suspended, and the interest rate will be set to 0%. So the current users would not bear the risk of being liquidated.
Last but not least, we have long term goals, and Vee.Finance will continue to build and innovate. We will learn from this attack and use it as an opportunity to further strengthen the Vee.Finance platform. Despite the setback, we remain driven in our mission to reduce barriers for traditional users to participate in DeFi and optimize the efficiency of global asset allocation.