MIP #80 - Voting on Radiant’s Remediation of Unlimited Approval Losses

Abstract

This proposal seeks input from vlMGP holders on whether Magpie should support Radpie’s RIP #21, which concerns alignment with Radiant Capital’s RFP-53. RFP-53 introduces a governance process to determine if the DAO should pursue remediation for wallet-level losses caused by exploited unlimited token approvals.

This initial-stage proposal does not define implementation details, but rather addresses the foundational question of whether this specific class of user losses warrants remediation. Should RFP-53 be approved, a follow-up proposal (RFP-54) will define the exact terms of the remediation process.

Motivation

Unlimited token approvals are a longstanding risk within DeFi, often overlooked by users and sometimes embedded into protocol workflows. During the October 2024 security breach, hijacked lending contracts leveraged these unlimited allowances to directly drain user wallets.

Unlike earlier efforts (e.g., RFP-47) that focused solely on depositors, RFP-53 addresses losses stemming from interactions encouraged by protocol-level design and UX decisions.

Following the analysis of Feedback 104 and extensive community consultation, RFP-53 presents a clear governance path. The proposal asks whether remediation should be pursued. If passed, RFP-54 will then be introduced to define the operational and financial mechanics of the remediation effort.

Specification

Vote on whether Magpie should support Radpie’s RIP #21, which proposes alignment with Radiant Capital’s RFP-53 for initiating remediation for unlimited allowance-related losses.

Options:

• For – Endorse RIP #21 and support the development of remediation terms under RFP-54.
• Against – Do not support remediation.