Current Situation:

The Impermax V3 auto-compounding module was exploited by a hacker who, with the assistance of a flash loan, manipulated the value of accrued fees on V3 positions. This unfortunately left some lenders with bad debt.

Thanks to a swift response (we began acting within 40 minutes of the event) and a robust white-hat rescue effort, we were able to secure most of the funds at risk. A detailed breakdown is provided below.

The immediate next step is to determine how, and in what form, we will proceed with repayment. All scenarios have pros and cons. Regardless of the chosen path, please be assured that the Impermax team is committed to doing everything in its power to ensure full repayment, in good faith and to the best of our abilities.

The objective of this proposal is to determine how to distribute the recovered funds to repay affected users.

A future proposal will be made to plan how to eventually repay the remaining debt. It is agreed and understood that Impermax must first achieve profitability, which is preceded by a successful relaunch and market development, in order to be financially capable of fully repaying the outstanding debt. Therefore, any prediction as to how much will be repaid (future proposal), or within what timeframe, is highly speculative and therefore of little use for at least one year.

Repayment Plan Options:

1. Utilize Treasury and Terminate the Project: This proposal involves terminating the Impermax project to maximize the short-term repayment percentage for users affected by the recent event. The project experienced a significant capital loss, leaving approximately 80k USD in the remaining treasury. If this option is selected, this capital would be proportionally added to the redistribution. $80k would be added directly to the repayment funds.

Since assets were not recovered equally or proportionally, an initial socialized repayment percentage, using both recovered funds and treasury assets, would be established.

This ensures all affected users start from the same baseline. This option #1 would be a standalone final resolution if chosen.

2. Dollarization: This proposal involves repaying users based on the USD value of their assets at the time they were compromised (i.e., at the block of the event).

As assets were not recovered equally, all recovered tokens will be converted to USDC and a common repayment percentage will be established to ensure a fair refund for all users. At current market prices, users can expect to get back around 80% (i.e., at the block of the event). of their assets’ USD value with the initial distribution.

3. Tokenization: This proposal involves repaying users with the same type of tokens they held when their assets were compromised (at the block of the event).

Since assets were not recovered equally, they will be converted in such a way to ensure the same repayment ratio for each token.

With this proposal, each user can expect to get around 68% of their tokens back with the initial distribution.

Important Considerations:

• Please note : For options 2 & 3 the repayment of any remaining percentage in the future is not guaranteed.
• Any prediction as to how much will be repaid (future proposal) and in which form, or within what timeframe, is highly speculative and therefore of little use for at least one year.

Resources:

List of creditors: https://docs.google.com/spreadsheets/d/1KFzIyOy5qOcw4rhik-VbuLsljGTUoqK2N2t5fgePmAs/edit