[0IP-23] Emergency Proposal: Distribution of the returned vGHST from the Gotchi Vault

The purpose of this emergency proposal is to vote on a fair redistribution of the recuperated vGHST funds from Gotchi Vault to users affected by the 0VIX exploit.

Motivation:

This proposal involves those vGHST funds received from GotchiVault in the immediate aftermath of the 0VIX May 2023 exploit and it proposes to deposit them directly into their respective vGHST market in anticipation for future protocol reopening.

Following the exploit of the 0VIX Protocol on the 28th of April, the team has been working tirelessly to help recapitalize markets in the fairest and fastest way possible. Among the funds recovered, the 0VIX protocol multisig currently holds ~206,000 vGHST returned by GotchiVault based on a proposal in the aftermath of the exploit.

Another 763k GHST used to enable the exploit were sent to the Aavegotchi DAO (AV) treasury, which the 0VIX community has been attempting to convince the DAO to return to the rightful owners. To this regard, two proposals are currently being voted on by the Aavegotchi DAO (AVAGV) community.

These proposals are unlikely to reach quorum if Gotchi Vault refrains from voting for the AAVEGOTCHI DAO votes.

As declared in the context of discussions and as restated during the community call with Aavegotchi DAO on July 15th, 2023 on their discord, Gotchi Vault is open to support the returning of tokens to 0VIX DAO exclusively if those are used to the benefit of its community. Until the ~206,000 vGHST tokens sent to the 0VIX DAO wallet are committed to recouping liquidity in the vGHST 0VIX market only, Gotchi Vault will not use its voting power within the Aavegotchi DAO( ~4.2million GHST of voting power) to positively weigh in on the 0VIX-related proposals , . Since the exploit, the team conducted several discussions aimed at recouping tokens at all cost, but it cannot decide on such use without DAO approval.

To display sufficient good faith and incentivize a successful vote on the return of tokens back on 0VIX, on the July 15th AV community call, prominent members of the GV community (specifically the GV manager Bearded ) asked our community to vote on an emergency proposal that commits to depositing the vGHST tokens in the respective vGHST market. As the GV community commands significant voting power towards a successful outcome of the AV snapshot votes, we are proposing this emergency proposal as both the SigProps and CoreProps on AAVEGOTCHI DAO conclude this Wednesday 19.07.2023 at 9:07PM UTC and 3:46PM UTC, respectively.

Details:

The goal is to vote on the distribution process for the previously-received vGHST that seems the most fair, maintains trust, and fosters long-term relationships.

Assuming that the remainder of the tokens, the ~700,000 GHST currently with Aavegotchi DAO, are successfully sent to 0VIX or a third party multisig (based on the outcome of the currently-running governance proposals), the ~206,000 vGHST that was previously sent from Gotchi Vault vault to 0VIX will be used for the purpose of restoring liquidity to the 0VIX vGHST users, ensuring that they will be able to withdraw their funds.

This means that the ~206,000 vGHST should be deployed to the vGHST market on 0VIX.. For this, borrowing of vGHST should be disabled. Only redemptions should be allowed.

This proposal is only about the vGHST funds that have already been received. The process on the distribution of the ~700,000 recuperated GHST funds (that are currently still with Aavegotchi DAO) has already been voted on in the 0VIX DAO. Everyone can view that proposal, together with all of its details, here: https://snapshot.org/#/0vix-protocol.eth/proposal/0x7f8f6ce23115e8a009327b9010caf7e6b809617691281f05ee0afc874143b8c3.

Proposal:

• Option 1: Accept the proposal
• Option 2: Further discussion needed

Quorum Standards:

• 50,000 preVIX

Voting period:

• 48 hours