BIP 98: Restitution Badger Bridge Lost Funds

TLDR: Users lost funds using the Badger Bridge. The circumstances to which these funds were lost required a very unique set of interactions by the user with the bridge contracts. As a result native BTC was deposited & the users were unable to retrieve the equivalent BTC on Ethereum.

Bridge Summary:

• The Badger Bridge was built on top of Ren’s core tech stack similar to the https://bridge.renproject.io/
• The Badger implementation was created and managed by Polymer Labs with Badger DAO support
• Polymer created, maintained and upgraded bridge contracts and Badger DAO provided additional testing and front end support
• Badger, Ren and Polymer Labs each received about 20 BTC in revenue from the Bridge during its lifetime
• Ren and Polymer have declined to accept any responsibility for the loss or for restitution

Losses and Proposed Restitution:

• User 1 Lost 17 BTC. The user has agreed to accept a settlement of 50% of 17 BTC in the form of BADGER tokens at the current USD exchange rate which is ~$163,000.
• User 2 lost .086 BTC. This proposal is to provide 100% restitution to the user in the form of BADGER tokens at the current USD exchange rate which is $1,650.