Compensation on Overcharged Deposits

Summary

TL;DR Funds are safe. There was a bug in the Ribbon v2 vaults where the vaults overcharged the vault fee on the first week of the user’s deposit, even when the users’ funds were not used to write options yet.

The DAO Treasury has initiated a series of transactions to compensate for losses due to this bug, and the fix is deployed to the vaults so this does not happen again.

The Bug

The issue is that users were charged management fees upfront on the week they first deposited their funds. For example, if a user deposits on Thursday, they should only be charged fees on the following week’s Friday because their funds were utilized to write options and earn premiums. The undesirable behavior was that the users were charged the fees upfront.

The Fix

In order to fix the situation, below are the steps we have taken:

  1. We have written and deployed the fix on the three v2 vaults, ETH, WBTC and AAVE. This ensures that new users are not overcharged.
  2. Next, we used the erroneously collected fees from the DAO to deposit into the vaults. We then distributed the compensation amounts in vault tokens to all users who were affected. The total amounts were 11.79 ETH, 0.18 WBTC and 0.55 AAVE.

DAO to vault deposit: https://etherscan.io/tx/0x99b3a4f1795b9bec29eaea1808fd96598eeb343725280e46a159aa49f43d1898

ETH compensation transaction: https://etherscan.io/tx/0xfe1fe54429dcda71016fdb46321832a3a02888704bff82ef722a4e6e4f66484d

WBTC compensation transaction: https://etherscan.io/tx/0x8ecac0e69cded56337538d82196fc1b887cfe0a33e770fb861d2c8c8d4e4a8fc

AAVE compensation transaction:
https://etherscan.io/tx/0xc6832ac8c9b38ce5a8cc7bbf476e00a6867daa6409ec8073b3f7264d783a03e4

Connect With Us

To stay updated, follow us on Twitter and join our Discord!

Website | Twitter | Discord | Forum

--

--

--

Crypto structured products on Ethereum 🎀

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Magda is Hacking Series: Lord Of The Root

{UPDATE} GK Master: General Knowledge Hack Free Resources Generator

International Cyber Policy

Troubleshooting Azure AD MFA

The error user gets while registering for Azure AD MFA.

{UPDATE} Sean Kelly's Storage Auctions The Real Pub Fruity Hack Free Resources Generator

iMe Messenger improves on Telegram Top Features and Code

My experience and review on OSWP/Wifu

Route53 the AWS DNS Service

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Ribbon Finance

Ribbon Finance

Crypto structured products on Ethereum 🎀

More from Medium

Introducing MakerDAO Risk Dashboard

Introducing Phantom Dao.

Long-Only: A Better Approach to DeFi Farming

Flipping your Perspective on Alchemix Loans, Part Two