BIP-109: Redistribution of Whitehat-Recovered Assets from Legacy Fantom V2 Pools

Summary

This proposal seeks approval to redistribute assets recovered through a proactive whitehat action on legacy Balancer V2 Composable Stable Pools on Fantom. Approximately $16,000 in assets were secured and are currently held in the Beets multisig.

These assets will be redeemed into FTM where possible, and if approved, converted into S using the most economically efficient route available. Afterwards they will be distributed proportionally to affected liquidity providers (LPs) based on verified historical LP positions. A fixed claims window will be established, after which any unclaimed funds will revert to the Beets treasury.

Background

Following the Balancer V2 Composable Stable Pool exploit on November 3rd, Beets conducted a broader review of all pools. During this review, three legacy V2 pools on Fantom were identified as inheriting the same disclosed attack surface.

Although Beets had already migrated its primary operations from Fantom to Sonic, these pools remained deployed on-chain and represented residual risk. In coordination with the Balancer team, Beets executed a proactive whitehat rescue to secure the remaining funds and eliminate the possibility of third-party exploitation.

Approximately $16,000 was successfully secured and transferred to the Beets multisig, where it is currently held pending a governance-aligned resolution.

The affected legacy pools on Fantom were:

• https://ftm.beets.fi/pool/0x593000b762de3c465855336e95c8bb46080af064000000000000000000000760
• https://ftm.beets.fi/pool/0x723d43bd1a1ff40deaab77a164b5c3ea4f654db2000000000000000000000750
• https://ftm.beets.fi/pool/0xe7334eae666c2fac73fd610603c0138db48d188b0000000000000000000007ef

This action was independent of the Sonic incident and reflects Beets’ broader commitment to proactively neutralising inherited risks across historical deployments.

Affected wallet addresses can be found here: https://docs.google.com/spreadsheets/d/1T4DpVPGbWx578aNWT3lHfBW4gjB_Y8KAPsKCtw3XJio/edit?gid=1836289232#gid=1836289232

Motivation

Converting the recovered value into S allows Beets to align compensation with the protocol’s current home on Sonic, while also ensuring LPs receive the maximum possible value from the recovered assets.

Since many of these LPs are very old and likely inaccessible, we are proposing to put a time limit of 6 months on the claims.

Proposal

This BIP proposes the following actions:

1. Asset Redemption and Conversion
   • The FTM will be converted into S using the most economically efficient route available at execution time.
   • This may include, but is not limited to, swapping FTM to USDC, bridging to Sonic, and purchasing S on the open market, rather than relying on a direct 1:1 migration if it is economically inferior.
2. Claims Process
   • Beets contributors will publish a list of affected wallet addresses based on historical LP positions in the affected pools.
   • A claims window will remain open until June 30th.
   • LPs must come forward during this period to confirm their claim.
3. Verification and Distribution
   • Claims will be verified by the Music Directors using on-chain data and historical LP balances.
   • Verified claimants will receive a proportional share of the total S acquired, based on their relative LP exposure at the time of the whitehat action.
4. Unclaimed Funds
   • Any funds not claimed by the June 30th deadline will be considered forfeited.
   • Forfeited assets will be retained by the Beets treasury and treated as treasury funds going forward.

Impact and Risk Assessment

This proposal resolves a small but important legacy issue in a way that prioritises fairness and transparency. The primary risks relate to operational complexity and ensuring accurate historical verification, both of which are mitigated by on-chain data availability and Music Director oversight.

Execution Plan

If approved, contributors will:

• Convert FTM into S using the most profitable available route.
• Verify claims and distribute S proportionally to eligible LPs.
• Transfer any unclaimed funds to the Beets treasury after June 30th.