DIP036 - Upgrade the wstETH/ETH Vault Contract

This proposal aims to seek support from the dForce community to upgrade the wstETH/ETH vault contract.

Background

On February 10th, dForce’s wstETH/ETH Curve vault on Arbitrum and Optimism were exploited. The attacker managed to utilize a reentrancy vulnerability of Curve pool to manipulate the price of wstETH/ETH on Curve, leading to liquidation of collateralized wstETH/ETH Curve gauge token on Arbitrum and Optimism and created a protocol debt during the process.

The dForce core team immediately paused all vaults after the attack, and teamed up with a number of security firms and our partners to track down the exploiter.

Motivation

This proposal aims to seek support from the dForce community to upgrade the wstETH/ETH vault contract, so that we can neutralize the exploiter’s account which holds some of the Curve gauge assets, and facilitate distribution to affected users.