On 21st April 2021, the addition of 1bp withdrawal fee on Venus platform alongside with the inefficient vault strategies on Autofarm resulted in the loss of an approximate ~$11,714,019.18 The breakdown of the lost assets are as follows:
- 2,865.983759433358593 WBNB
- 489,971.837610286845446 BUSD
- 2,619,201.387889664360674 USDT
- 1,839,435.845565256852938 USDC
- 37.724510860610408 BTCB
- 679.541309851960196 ETH
- 16,388.940617866063783 DOT
- 12,383.219112133274993 LINK
- 12,133.557502021173094 SXP
- 231,241.328465277489994479 ADA
The total number of affected users on the Autofarm platform amounts to 7481 addresses and the loss assets are currently residing in the Venus treasury.
The Autofarm team proposes to resolve this in a equitable and collaborative manner. It is a known fact that both Venus and Autofarm protocols are key pillars of the Binance Smart Chain (BSC) network and it is agreeable to resolve the issue at hand peaceable so that both projects can continue grow and strengthen the overall ecosystem. This would be beneficial for both communities in the long run because both team would be able to better focus on BUIDLing.
Key examples of collaborative approach to resolving issues in the Decentralized Finance space, include Venus Protocol rendering help towards DefireX with its stuck funds problem or when PancakeBunny helped in the recovery of ~$3m $BUNNY tokens which were accidentally locked permanently.
Autofarm will commit to the following
- Reinstate Venus vaults on the Autofarm platform with a newly-worked strategy. This will be beneficial for the Venus platform because of the traffic that Autofarm will bring as the top yield optimizer on BSC. This traffic includes, increased TVL, volume and fee collection for Venus protocol.
- In addition, Autofarm will permanently provide discounted fee rates for the reinstated Venus vaults. The Venus vaults will only have a total of 2.9% performance fee and <0.1% deposit fee, in comparison to the other BSC vaults on Autofarm which is at 3.4% and <0.1% respectively. For reference, the only other yield optimizer which still have Venus vaults - ACryptoS charges a total of 15.3% in fees with a 0.1% withdrawal fee.
These new Venus vaults will also be allocated to earn additional $AUTO token rewards that would further boost the APY of the vaults.
- On top of the 100% refund from Venus, Autofarm will also cover the loss interest yield using AutoSAFU. This amount will tally up to be 2.5%.
- Bring about ~$800m to $1b in TVL increase to Venus platform as per the previous numbers when Venus vaults were still available on Autofarm. This will result in ~20.84% increase in Venus’ TVL. With this increase in TVL, Venus platform is estimated to receive nett earnings of ~$206,613 daily and ~$75.4m in a year.
- Given the lower fees charged by Autofarm as compared to other yield optimizer (5.27x lower) + will be providing additional $AUTO token rewards; these factors would greatly increase the APY of existing assets & help to keep deposit into Venus vaults attractive.
- Restore users who suffered a loss during the incident with added interest for the loss of yield due to the time period.
Venus will commit to the following
- 100% refund of all the lost assets as mentioned in the breakdown above from the Venus treasury. (There will be no additional out of the pocket cost from Venus protoocol)
- Restore users who suffered a loss during the incident
- Helps to foster better relationship between Autofarm & Venus protocol
- Build the BSC ecosystem and encourage collaborative work amongst key projects in the ecosystem
- Autofarm’s Venus Vaults Post Mortem Report - https://medium.com/autofarm-network/21-april-2021-venus-vaults-post-mortem-1518ae7399c6
- Venus Protocol Weekly Update W34/2021 (DefireX stuck funds recovery) - https://community.venus.io/t/venus-protocol-weekly-update-w34-2021/1608
- Incident Report: The BUNNY rescue - https://medium.com/beefyfinance/beefy-finance-incident-report-the-bunny-rescue-feddc40a41e9