Should we end Mainent GIV liquidity incentives post-attack?

Hey everyone,

This is a proposal to terminate (rather than re-launch) the liquidity mining incentives programs for GIV in the GIVfarm. This includes:

• oneGIV/GIV (Angel Vault) on Mainnet
• GIV/ETH (80/20 Balancer pool) on Mainnet

Background (Attack)

On October 29, 2022 at 15:00 UTC the GIVfarm was hacked. The key we held to control notify reward in the farms was compromised. This basically controls the rate of rewards going out to the GIVfarms. The hacker set the reward rate to an extremely large number, harvested all the remaining GIV rewards & dumped it on the open market. They changed the reward rates for the following pools.

• oneGIV/GIV (Angel Vault) on Mainnet
• GIV/ETH (80/20 Balancer pool) on Mainnet
• CULT/ETH RegenFarm on Mainnet
• archived 100% GIV staking pool on Mainnet

Because there was a limit to the amout of rewards that could be paid out by the farms, the hacker was only able to make off with about 1.338M GIV & 162.8M CULT - this, fortunately, is only about $40,000 of GIV & $1100 of CULT.

Thanks to the GIVstream, they were only able to actually get ~25% of the rewards allocated to the farm, and we have terminated their GIVstreams. We are working with CultDAO to terminate their CULTstreams.

We have removed the compromised keys from everywhere we know of.

State of the GIVfarm

Right now, the pools that were affected look really strange. The APRs are out of this world & anyone who was farming has some seemingly crazy amount of GIV to harvest. It is, however, impossible to harvest because there is not enough GIV allocated to those farms to pay out any more rewards post-attack.

We have a team working on getting a full understanding of exactly how much rewards each address still had to claim at the time of the attack, and it is our intention to give those farmers what they earned.

In the meantime, we also need to decide how to proceed with the GIVfarm, either by restarting these rewards programs and allowing them to run as expected, or by terminating them at the time of the attack.

Proposal to end Mainent GIV liquidty Incentives

We believe that the better path forward is to end the incentives programs "at the time of attack" for the following pools:

• oneGIV/GIV (Angel Vault) on Mainnet
• GIV/ETH (80/20 Balancer pool) on Mainnet

Justification:

• As a result of routing issues, the Angel Vault liquidity is not being used at all for GIV trades on Mainnet - expect for direct trades between GIV & oneGIV. MeV bots have been taking advantage of this occassionally, but tbh, unless the routing is fixed, we don't get the benefit of all this incentivized liquidity.
• The GIV/ETH Balancer pool rewards were set to to end mid-November and we did not plan to extend them afterwards.
• Without a clear benefit to these liquidity pools, it is diffcult to justify the development cost that would be required to redeploy these farming contracts.

Notes:

• We hope to relaunch the CULT/ETH RegenFarm to support our partners and plan to make up the lost rewards - awaiting their direction.
• The GIVpower 100% GIV staking was not affected, and we are not proposing to change this pool.