Proposal:

This proposal aims at ascertaining that 0IP-23 reflects the will of our community given the circumstances under which the community was made to vote on it. It asks the community whether to reaffirm 0IP-23 or distribute the proceeds of the vGHST funds to all affected markets following the distribution schedule voted on in 0IP-21.

Motivation:

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 206k vGHST returned by GotchiVault (GV) vault managers in the immediate 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 for the past 5 months. As of July 27th, the CoreProp for the return of GHST funds has passed and the funds have been returned to the proposed multisig.

On the July 15th AV community call, a number of GV Vault Managers urged our community to create and vote on an emergency proposal that commits to depositing the entire vGHST funds in the respective vGHST market. It was made clear that otherwise, they will not use their significant voting power and thus would prevent the GHST funds being returned. To put this event into perspective, we note that among such actors, several hold public addresses that profitably extracted excess funds deposited by the exploiter into GV between the time of the attack and GV’s contract pausing (20k blocks later):

https://docs.google.com/spreadsheets/d/1zRQse3Mq7iKdFw3gisL5NiBNPQwSitRP-vzJ6ya7fBQ/edit?usp=sharing

It does not appear right to let such parties use 0VIX as soon as POS resumes, until their motives for going against the interest of the community are made clear. In the future, the community should consider discussing whether to suspend any oTokens associated with the aforementioned addresses, as a temporary measure, to ensure that potentially malicious actors are not allowed to take further advantage of 0VIX.

We ask owners of these wallets to reach out to Admins on the 0VIX discord channel regarding their funds, which appear unduly subtracted from 0VIX.

Considering the amount at stake and the delicate position of our community following the exploit, recouping these funds was a necessity to be able to move forward. As the GV community commands significant voting power towards a successful outcome of the AV snapshot votes, 0IP-23 had to be rushed onto the community without any further discussion or notice period.

In hindsight, these GV Vault Managers seem to have taken advantage of their position of strength to push forward a solution catering to their own advantage, to the detriment of the broader community. In the aftermath of the vote, many in the community therefore complained that this vote amounted to blackmailing. To remedy this disempowerment of our community’s voice, this proposal attempts to confirm that returning the entire vGHST amount to the vGHST market is truly the community’s will.

Given the extraordinary circumstances, to avoid any further interference risks by unaligned actors, the treasury has preemptively swapped all the vGHST into GHST tokens through the GV contracts.

The GHST tokens resulting from the swap were moved to a number of CEX accounts as a precaution until this vote decides on their use. From there the sale can be prepared so it can be executed should this vote result in these tokens being treated in line with 0IP-21 rather than 0IP-23. All CEX/DEX sales will be accounted for and full logs will be openly shared with the community to make the process as transparent as possible and at the same time to prevent any frontrunning.

Due to the extraordinary circumstance surrounding this vote, it must carry voter participation abundantly in excess of participation on 0IP-23. As such, quorum is set at 150k (3x the quorum threshold of 0IP-23) and the voting time to 7 days (vs 48 hours on 0IP-23).

Details:

Option A :  Reaffirm the recent vGHST proposal 0IP-23.

Reaffirm the passing vote on 0IP-23 and proceed as expected by the GV. Currently held GHST tokens will be used to remint vGHST and the amount will be deposited into the vGHST market.

Option B: Distribute vGHST as in 0IP-21.

This outcome paves the way for replenishing of markets with all liquidity obtained by further swapping the available GHST tokens in line with 0IP-21.