Compound Contribution to DeFi United Recovery Effort (Snapshot 2)

Co-authored by Compound Foundation and CGWG

Background

On May 2, 2026, Snapshot 1 passed, with delegates signaling support for Compound DAO contributing to the DeFi United recovery effort in principle, subject to the Conditions to Contribution outlined in the forum proposal.

This Snapshot 2 addresses the execution question deferred from Snapshot 1: at what size should Compound contribute?

The DeFi United initiative has continued to develop in the days following Snapshot 1. As of this Snapshot, the coalition has secured commitments expected to be sufficient to fully restore rsETH backing, conditional on remaining governance votes and pledges materializing as anticipated.

Purpose of Second Snapshot

Snapshot 1 established the principle of participation. This Snapshot asks delegates to approve or reject a contribution of approximately 1,860 ETH to the DeFi United recovery effort, drawn solely from recovery of the attacker's position on Compound.

A multiple-choice format presenting various contribution amounts was considered, but recent delegate conversations have surfaced a clear preference for sourcing any contribution exclusively from funds connected to the exploit itself, rather than from broader treasury reserves. A binary structure allows the DAO to confirm or reject that preference cleanly, without diluting the signal across multiple amounts.

This contribution structure reflects two principles surfaced by delegates:

• Compound should not profit from the exploit. The attacker's frozen position on Compound is expected to yield surplus value upon resolution of the rsETH backing situation. Returning that surplus to the recovery effort, rather than retaining it in Compound's reserves, ensures Compound does not derive economic benefit from this exploit.

• The contribution should be appropriately sized to Compound's circumstances and the structure of the incident. Sourcing from the attacker's position provides a natural basis for that sizing while supporting meaningful participation in the overall recovery process.

Hence, a "Yes" vote authorizes a contribution of approximately 1,860 ETH sourced from the attacker's position recovery, subject to the Conditions to Contribution. A "No" vote signals that delegates do not support a contribution at this size or from this source.

Contribution Structure

The proposed contribution would be sourced exclusively from recovery of the attacker's position on Compound. Specifically:

• The contribution is contingent on restoration of rsETH backing through the DeFi United recovery effort. If recovery is not achieved, the contribution does not materialize.

• No incremental treasury funds would be deployed beyond the recovered amount.

• The exact final amount may vary slightly based on the resolution of the attacker's position and prevailing conditions at the time of execution; "approximately 1,860 ETH" reflects the current estimate.

Conditions to Contribution

Consistent with the conditions affirmed in Snapshot 1 and set out in the forum proposal, any contribution authorized under this Snapshot remains strictly conditional on:

• Full Backing Condition: rsETH is reasonably expected, based on the agreed Recovery Plan, to be fully re-collateralized such that the backing shortfall is fully addressed.

• Fair Treatment Condition: recovery funds are applied in a manner that is neutral, proportionate, and non-discriminatory across affected protocols, platforms, and users.

• Defined Plan Condition: a clear and technically executable Recovery Plan has been specified publicly.

• Governance Visibility Condition: sufficient information regarding the Recovery Plan and intended use of funds has been made available to enable informed assessment.

• Execution Determination: the final contribution amount, approximately 1,860 ETH, is determined by the resolution of the attacker’s position and prevailing conditions at the time of execution, with the Execution Group determining the other conditions above have been satisfied.

Compound reserves the right not to release funds if these conditions are not satisfied, including releasing a lower amount or no amount at all.

Vote Options

• Yes: Compound should contribute all funds sourced exclusively from recovery of the attacker's position (approximately 1,860 ETH), with no incremental treasury capital, to the DeFi United recovery effort, subject to the Conditions to Contribution.

• No: Compound should not contribute on these terms.

• Abstain

Note: This vote will pass if "Yes" votes reach at least 400,000 COMP and outnumber the "No" votes; else, the vote fails.