alpha-depositors-gov.eth

Alpha Community’s Decision On Next Step Towards Getting Users’ Funds Back from Iron Bank #2

Voting ended almost 3 years agoSucceeded

View on Google Docs http://bit.ly/3FI4rKr

We’d like to propose the following solution to IB and depositors.

Since the amount of liquidity supplied on USDT and DAI is less than the debt amounts, specifically ~1.89M USDT and ~1.92M DAI, Alpha is committed to pay IB ~1.89M USDT and ~1.92M DAI within 1.5 years.
Since the amount of liquidity supplied on ETH and USDC is more than the debt amounts, specifically ~4.85k ETH and ~5.1M USDC, we propose IB to allow ETH and USDC depositors on Alpha Homora v2 to withdraw the excess amounts proportionately.

This means that every ETH depositor will be able to withdraw ~30% directly from the platform, and every USDC depositor will be able to withdraw ~57% directly from the platform.

We understand that Alpha’s commitment to paying ~1.89M USDT and ~1.92M DAI to IB over 1.5 years is very important to IB, and IB may not accept this whole proposal altogether and users funds’ will be stuck for longer. Therefore, Alpha is committed to pay a total of ~1.89M USDT and ~1.92M DAI within 1.5 years, so that IB can accept this proposal and release excess ETH and USDC funds to users.

As Alpha pays ~1.89M USDT and ~1.92M DAI to IB within 1.5 years, 63M ALPHA tokens, that are locked and set aside as initial recovery plan with IB, shall be returned proportionately from IB to Alpha treasury.
As 63M ALPHA is returned from IB proportionately over 1.5 years, Alpha will distribute this recovery portion to affected users over time.
- Details as to how 63M ALPHA will be distributed can be discussed and voted again later on after we know this whole proposal is the direction we are executing.
Additionally, 20% of protocol fees from all upcoming Alpha products will be distributed to depositors.

Note that all exact numbers are to be agreed upon before actual execution if this proposal passes and if IB accepts.

Next Steps

If this proposal is passed and IB agrees:

ETH depositors will be able to withdraw ~30% from the platform
USDC depositors will be able to withdraw ~57% from the platform
As 63M ALPHA is returned from IB proportionately over 1.5 years, depositors will get this portion.
- Details as to how 63M ALPHA will be distributed over 1.5 years can be discussed and voted again later on after we know this whole proposal is the direction we are executing.

If this proposal is not passed:

IB is not going to release excess ETH and USDC funds
100% of all depositors’ funds will continue to be stuck

Off-Chain Vote

For

9.85M ADT95.6%

Against

451.43K ADT4.4%

Abstain

0 ADT0%

Quorum:105%

Download mobile app to vote

Timeline

Mar 22, 2023Proposal created

Mar 22, 2023Proposal vote started

Mar 24, 2023Proposal vote ended

Oct 26, 2023Proposal updated

Next Steps

If this proposal is passed and IB agrees:

ETH depositors will be able to withdraw ~30% from the platform

USDC depositors will be able to withdraw ~57% from the platform

As 63M ALPHA is returned from IB proportionately over 1.5 years, depositors will get this portion.

Details as to how 63M ALPHA will be distributed over 1.5 years can be discussed and voted again later on after we know this whole proposal is the direction we are executing.

If this proposal is not passed:

IB is not going to release excess ETH and USDC funds

100% of all depositors’ funds will continue to be stuck