RIP #21 - Voting on Radiant’s Remediation of Unlimited Approval Losses

Abstract

RFP-53 seeks a governance decision from the Radiant DAO community regarding the remediation of wallet-level losses resulting from the October 16, 2024, security breach, specifically targeting losses caused by exploited unlimited token approvals. This foundational proposal will ascertain whether the DAO supports remediation efforts at all. Upon approval, subsequent proposals (RFP-54) will outline detailed remediation terms, including funding strategies, timelines, discount mechanisms, and operational considerations.

Motivation

On October 16, 2024, Radiant experienced a significant security breach, resulting in over $50 million in user deposit losses. Additionally, hijacked lending contracts exploited previously granted unlimited token approvals, directly draining funds from individual wallets. Unlimited approvals are a known and frequently underestimated vulnerability within the DeFi ecosystem. Unlike prior proposals, such as RFP-47, which primarily addressed depositor-specific losses, this group of users had direct interactions influenced by DAO-supported workflows and user experience patterns that inadvertently promoted risky unlimited approvals.

To uphold governance integrity and ensure clarity, the community is initially asked to address a fundamental question explicitly: Should the DAO remediate losses stemming from unlimited allowance exploits? If RFP-53 passes, a subsequent proposal (RFP-54) will then present detailed remediation options.

This initial-stage proposal follows extensive community engagement and thorough analysis of Feedback 104, ensuring that the DAO’s governance process transparently addresses whether these particular losses warrant remediation.

Specification

Determine Radpie’s voting stance regarding Radiant Capital’s RFP-53.

Options:

• For: Proceed with developing detailed remediation plans (subsequent RFP-54 proposal).
• Against: Do not remediate; conclude the process here.

If RFP-53 is approved, proceed to RFP-54 to outline the framework for remediation of unlimited approval losses.