SIP (#006): Maturing Our FeiRari Market Early

This Saturday, April 30th at ~9:30 EDT (1:30 UTC), Rari Capital suffered a re-entrancy attack which left their pools insolvent to the tune of roughly ~$80 million.

https://twitter.com/Hacxyk/status/1520370421773725698

This attack included the FEI market that we’ve integrated here at Swivel — FeiRari Pool 8.

As of now, May 2nd, ~90% of our user’s funds have been recovered, and ~198,000 FEI remain.

Potential Paths: Fund Recovery: The first path is the completion and early maturity of our Rari FEI market.

Assuming Rari Pool 8 has FEI for withdrawal once our withdrawal queue completes:

zcFEI: Redeemable for FEI at a ratio of 99:100 nFEI: Redeemable for FEI at a ratio of 1:100 Redeemable FEI: Reedemable for FEI 1:1 (Calculated based on the exchangeRate at 0:00 UTC on 5-2)

The market itself would close until further notice, and an additional market would launch ASAP alongside our imminent Arbitrum launch.

FeiRari Recovery: Depending on the response of the FeiRari DAO on tomorrows call, it may also make sense to continue the market as is, and trust in their recovery processes.

With significant PCV in both Rari/Tribe treasuries, and our funds specifically all in FEI within the FeiRari pool, our depositors will likely be able to redeem funds at or near face value.

The result would be that our market continues to operate as it has, with our impacted liquidity providers having earned significant rewards for their trust in our systems.