RFP-49: Establishing a Remediation Convenience Class

Abstract

This proposal seeks to establish a Convenience Class for net deposits ranging from 10 to 1,000 USD, with a 30% haircut. This approach aims to streamline the remediation process for smaller depositors affected by the October 16, 2025 security breach (95% of the affected wallets), while maintaining operational efficiency for the Radiant DAO and simplify the remediation of lost funds for the remaining 5% of the wallets affected by the drained core market deposits.

Motivation

The recent security breach has significantly impacted our community, necessitating an efficient remediation strategy. By implementing a Convenience Class, we can expedite the remediation process for a large portion of affected users, demonstrating our commitment to user welfare and operational resilience.

Rationale

Introducing a Convenience Class benefits both users and the Radiant DAO. The class can also streamline administrative processes, reducing the burden of managing numerous small deposits individually, which can otherwise be time-consuming and complex. This class also addresses potential gas inefficiencies, as claim contracts may be gas-inefficient for small amounts, making it more costly for small depositors to process funds individually. Smaller depositors might also be less likely to monitor the remediation process over a long period of time, which could lead to missed opportunities for participation or claiming.

For the Radiant DAO, implementing this class helps ensure that smaller deposits are handled more efficiently, improving overall operational and smart contract scalability. Additionally, by offering this convenience, the DAO can potentially improve user sentiment and retention, as participants are more likely to stay engaged when they feel their smaller investments are recognized and valued.

For around 2% of the total hacked amount, the Radiant DAO could remediate between 90% (Arbitrum) and 98% (BNB Chain) of wallet addresses, as the majority of users fall within the $10–$1,000 deposit range.

• Arbitrum: 12,705 addresses with $10 - $1,000 lost deposits. Along with 258,103 wallets with dust ($0 - $10), the convenience class would represent 89.67% of the total number of depositors on Arbitrum. Users above $1,000 represent 10.33% of the depositors.

• BNB Chain: 14,865 addresses with $10 - $1,000 lost deposits. Along with 62,659 wallets with dust ($0 - $10), the convenience class would represent 97.73% of the total number of depositors on BNB Chain . Users above $1,000 represent 2.27% of the depositors.

Note: The numbers mentioned above may vary depending on token prices and the breakup of certain aggregate wallets. However, the overall ratios will remain largely unchanged.

Survey 101 Results

The 2-week community survey produced 70% yes and 30% no votes. Within the three (3) yes options (A/B/C), option A (30% haircut) receives 79% of the yes votes and is therefore being put in front of the DAO for potential ratification.

Survey-101 Results

Key Terms

• Convenience Class: A group of users with smaller deposits (10-1,000 USD) bundled together for administrative efficiency during the remediation process.

• Haircut: A reduction in the value of funds that users agree to accept as part of a remediation plan.

• Net Deposits: The total value of a user’s deposits minus any outstanding loans.

Specifications

1. Eligibility: Users with net deposits ranging from 10 to 1,000 USD on Arbitrum and BNB Chain.

2. Haircut: 30% reduction on eligible deposits.

3. Implementation: One-time airdrop instead of long-term claim contracts.

4. Price Conversion: On the day the RFP is officially approved on-chain.

Opting Down

Users with net deposits exceeding 1,000 USD can choose to adjust their net deposits to 1,000 USD to qualify for the Convenience Class.

Examples

• Net Deposit: 1,050 USD → Opted Down to 1,000 USD → Airdrop: 700 USD

• Net Deposit: 1,400 USD → Opted Down to 1,000 USD → Airdrop: 700 USD

• Net Deposit: 1,800 USD → Opted Down to 1,000 USD → Airdrop: 700 USD

How to Opt Down

To opt down, send any ERC-20 token from the wallet you wish to Opt-down (on Arbitrum or BNB Chain) to: 0x19508555Bbe5C8Ca65eDd38474946D36c1041AdF

The transaction must be recorded on the blockchain.

Example transactions:

• BNB Chain: Send 0.01 USDT
• Arbitrum: Send 0.01 RDNT

We will track all transfers and migrate wallets from the Remediation Claim Contracts to the Convenience Class. Once processed, your wallet will be removed from the Remediation Claim Contracts.

Steps to Implement

Users who are eligible for the convenience class will receive their funds through a one-time airdrop rather than through long-term claim contracts (RFP-47).

The Convenience Class would not guarantee an instant remediation; rather, it means that this user group would be prioritized for remediation, most likely in multiple waves.

1. Data Compilation: Generate a comprehensive list of eligible users and their net deposits.

2. User Interface: Develop a user-friendly interface for users to check eligibility.

3. Communication: Launch a multi-channel campaign to inform users about the Convenience Class and its benefits.

4. Opt-down Window: Users wanting to opt-down will be able to do so during a 4-week period.

5. Merkl Airdrop: Convenience class participants will be airdropped using Merkl from Angle.

6. Monitoring and Support: Establish a dedicated team to oversee the process and provide user support.

   Timeline

• Step 1: RFP-49 Ratification

• Step 2: Complete data compilation

• Step 3: Finish UI development and launch communication campaign

• Step 4: 4-Week opt-down window.

• Step 5: First phase of Convenience Class airdrops 10-100 USD Tranche.

• Step 6: Second phase of Convenience Class airdrops 100-500 USD Tranche.

• Step 7: Third phase of Convenience Class airdrops 500-1000 USD Tranche.

Overall Cost

The primary cost will be the remediation of deposits, which is estimated at 2% of the total hacked amount. Additional costs include:

• UI development: Minimal

• Communication campaign: Minimal

• Merkl Campaign: 0.5%

• Ongoing support and monitoring: Minimal

Total estimated cost (excluding remediation): Minimal

Conclusion

By implementing this Convenience Class, we’re not just addressing a logistical challenge – we’re reaffirming our commitment to our community. This innovative approach will allow us to remediate between 90% (Arbitrum) and 98% (BNB Chain) of affected wallet addresses efficiently, demonstrating our ability to leverage cutting-edge solutions in times of crisis.

As we chart our course through this remediation phase, let’s view this not just as a setback, but also as an opportunity to showcase the resilience and innovation that defines the Radiant community. Together, we’re not just rebuilding – we’re evolving, setting new standards for crisis management in the decentralized finance space.

Your vote in favor of this proposal is a vote for effective action, operational excellence, and unwavering support for our community. Let’s turn this challenge into a testament to the power of collective action and technological innovation.

Voting

• In Favor: Support for implementing the proposed steps.

• Against: Opposition to the implementation of RFP-49.

• Abstain: Undecided, but contributing to quorum.