ScrIP-05: Scream v1 Compensation Plan

Summary

As compensation for the bad debt caused by the depegs of fUSD and DEI in early 2022, and in place of repaying borrows for assets that are now significantly devalued following the Multichain exploit, Scream v1 debt holders will be able to claim their pro-rata share of ~12.4m bDEI, ~4.5m fUSD, and 400,000 SCREAM.

Specification

• There will be no distinction between lend-only and depositors with borrows. Based on previous snapshot values (pulled from before the first discussion of this plan) , total value owed to users is ~$12.4m (calculating net value from borrow - supply). For calculation purposes, snapshot treats multichain assets as their chainlink prices, borrowed fUSD as $0.76 (oracle price at time of market freeze) and DEI_old as $0. Deus wallets, the previous bDEI migrator, and accounts who provided liquidity as part of separate agreements are excluded from this snapshot. See snapshot gist here: https://gist.github.com/dudesahn/be711a00e929c4469027fbdc40b2c29e.
• Deus will make available ~12.4m bDEI that can be used to migrate to either DEUS or vested SYMM (for more info about this migration process, read here or check out the SYMM/Deus discords: https://medium.com/deus-finance/deus-future-vision-independent-pathways-for-innovation-d572115974c7, https://medium.com/deus-finance/early-symm-migration-announcement-144e51baf36f). For every $1 of net assets locked in the platform, users will be eligible to claim 1 bDEI. This is the same as was previously offered via Deus' scUSDC/scDAI migration contract. Once the bDEI => SYMM/DEUS migration has finished (expected to be open for several more months), a new mechanism will need to be put in place to compensate those who didn't migrate in time, likely from SYMM/DEUS protocol revenues or something similar. Deciding compensation for users who do not claim before bDEI redemptions close is out of scope for this proposal
• Users will receive a pro-rata share of Scream's fUSD (~0.37 fUSD per $1), or an equivalent distribution following any agreements reached with the Fantom Foundation (discussions still ongoing).
• 400k SCREAM (2/3 of treasury holdings) will be evenly distributed, likely vested or locked for a period to avoid mass market-dumping (tbd on mechanics here).
• Interest rates will be turned back on for v1 markets, so lenders who remain stuck will begin to accrue interest on their position. The Interest Rate Model (IRM) will be set to max out at around 30% APY for borrowers.
• Owners of smart contract addresses (strategies, etc.) should reach out to verify how they can claim their distribution.

Voting Choices

For: Carry out the above plan. Against: Do nothing, continue revising and improving the plan.