Repay today's (Dec 15) ZENTEREST liquidations with zenOM

From Dec. 14 09:47:37 PM UTC to Dec. 14 10:51:17 PM UTC, there were price feed discrepancies related to issues CoinmarketCap was facing. This resulted in the liquidation of a number of suppliers on the platform. This issue has since been fixed and the correct prices are now showing on ZENTEREST.

For those Sherpa suppliers that were liquidated through this incident, we would like to propose a solution for the complete reconciliation of unfairly liquidated assets.

Given that a number of different assets were liquidated, we propose to have the reconciled amounts be repaid in zenOM tokens instead of each individual zenASSET. This allows the MANTRA DAO Foundation to save treasury cash assets.

The zenOM given on non-OM liquidations would be paid at a premium to the USD value of the liquidated assets. This ensures that everyones' collateral factor will be restored, and in addition compensate those users with a premium to the USD value of their holdings prior to the liquidations. We are proposing for the premium paid in zenOM to be 20%. This means that for every dollar of non-OM zenAsset that was liquidated, the user will receive $1.2 dollars of zenOM in return.

We see several benefits here:

1. The MANTRA DAO foundation saves cash treasury assets for other beneficial uses.
2. Users get reimbursed in full USD value, plus a 20% premium.
3. Users retain the ability to sell their zenOM if they so please (at a premium) in order to buy back whatever asset they had liquidated.
4. MANTRA DAO reserves the right to buy back OM with cash savings.

We will be spending roughly 8M OM on this proposal. 2.7M to cover the 2.7M OM liquidated and an additional 5.5M to cover the remainder + 20% premium. Again, this will be paid back in zenOM so that users' collateral levels go back to normal (for users who do not have zenOM enabled as collateral, they will have to perform this action before their collateral levels go back to normal).

We will run this proposal for 24 hours and will be executing the airdrop tomorrow should the proposal pass.

🕉🕉🕉, The Council