Compensating stATOM vaults owners from CMST in the Collector Module

Dear community members,

We would like to start off by thanking you all for your patience and support while we worked on a plan to make users affected by the recent oracle failure whole. We would like to initiate a forum discussion focused on the compensation process for the affected users.

We understand that the recent oracle incident has had a significant impact on some users accounts, and we are fully committed to addressing this issue and providing fair compensation.

After a diligent assessment, the team has calculated the total amount owed in compensation to affected users to be $20,163.5. To facilitate a clear understanding of the compensation breakdown, we have prepared a comprehensive sheet that outlines the details for each user. The sheet includes the addresses, the amounts of stATOM collateral liquidated, and the amounts of collateral users got back after liquidation. To calculate the net loss, we considered the market value of the tokens on the day of the incident and deducted the CMST that was minted by the wallets.

As a part of our initiative to make affected users whole, we would like to propose a pro-rata reimbursement of 20,163.5 CMST to be paid out to the affected wallets, to be paid from the CMST deposited in the protocol’s collector module. All fees and revenue generated by Harbor protocol accumulates in the collector module. The collector module currently has 25,074 CMST, which it has collected in various fees since its inception. We acknowledge that due to market price fluctuations and the stability fees accrued by the vault, there may be a slight variation of ±1 to 2% in the actual compensation amount.

We have also introduced (in our previous forum post) an initiative to waive the 0.5% drawdown fees on stATOM vaults for the next 60 days so that users can recreate stATOM vaults without being charged again.

As we navigate through this process, we want to emphasize that our team is readily available to address any queries or concerns you may have regarding the compensation. We are here to assist you and ensure that all your questions are promptly answered.

We would also like to take this opportunity to reassure you that we have taken corrective measures to prevent similar incidents from occurring in the future. Your trust and confidence in our platform are of utmost importance to us, and we remain dedicated to upholding the highest standards of security and reliability.

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Thank you for this team!
I got rekt during that oracle problem and was afraid if I’d ever get those funds back. This is surely a good initiative and I am in support

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trust and confidence and safety is most important. good proposal

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Am I correct in thinking that the collector module also collected some funds during the liquidation event? And is therefore selected as source for the compensation?

Is there another source for future purposes to have user compensation in place when needed?

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Yes the collector did collect 15% in penalties during this oracle incident. And hence was selected to be the source for the refund. Also the collector is the only source for compensation. In other cases the Harbor protocol is built in such a way that its self sustaining. i.e the debt and surplus auctions will take place in case of market volatility. Also we have taken the necessary measures to prevent any such issues again in the future.

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So when this accident will be fixed?

Well the oracle issue was fixed the next very day. And If you are asking about the proposal? Then it has been raised today.

3 Likes

Please make sure to vote on the Live proposals

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