AutoFarm Proposal: Collaboration with Venus

Background

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.

Proposal

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%.

Benefits

  • 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)

Benefits

  • 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

References

46 Likes

Let’s be honest, $11M in our treasury sure is nice… but there is only one thing to do here and that is give it back to them. Projects should cooperate in DeFi <3.

22 Likes

I knew this was coming as soon as treasury disappeared from venus.finance. Although it was Autofarms fault as they should have known this was coming you can’t punish the people who lost funds due to that incident. Some of the funds in the treasury could have been used to compensate people who suffered in the venus incident on may 18th, but its OK for me to reimburse people who lost due to the Autofarm incident in April.

20 Likes

This is an heroic action. Not only will it make those suffered be compensated, but to create a bigger community and deeper collaboration. It will be beneficiary to Venus and Autofarm. I strongly support it.

15 Likes

Well, it’s about time this is here. I’m a user of both platforms and lost over the XVS shortage and in the AF vaults. It Will be nice to see at least something of that coming back, maybe my luck starts to change hehe. Hope this proposal could move forward ASAP!

13 Likes

Yes, definitely yes!

Great income source and project synergy to make both projects skyrocket to the top where they belong.

12 Likes

I vote ‘yes’ for this proposal and we need to compensate the autofarm holders and move on. Let’s be honest we need autofarm and autofarm needs us. So qualms, let’s refund and move on. Period!

12 Likes

Can’t believe this has taken so much time, but finally something concrete. I know this is DeFi and Autofarm had an error on the strat, but hate to see Venus taking the funds from BSC users for them!!! If this was a hack ok, but this are two major protocols of the Binance smart chain, please talk and resolve this with the users in mind, you are not taking funds from autofarm, you are taking it from the users, this cannot be fair. Please send the funds back and cooperate more in the future.

11 Likes
  1. It’s a win-win offer
  2. it wouldnt charge our Marketing treasury.
  3. It would be an awesome move for the 1rst BSC birthday.

My recommandation, we could have Auto tokens to lend/borrow on Venus.

15 Likes

I would vote ‘YES’, for a good fresh start. Good thing is I expect Venus and Autofarm to BUIDL together bringing higher TVL to both. I am clearly looking forward to it.

6 Likes

I dont think anyone would disagree with this proposal. As I’ve said before this is beneficial for the entire BSC ecosystem.

The time of pointing fingers is over and now everybody needs to sit around the table like real gents

4 Likes

That’s a good answer. Good project

5 Likes

Good solution! Good project

6 Likes

so if my maths are correct (and if autofarms are) we make it back in like 2 months? (~200k per day)

lol, y did this take so long :confused:

5 Likes

I think it’s a good win-win that will benefit both platforms, expand the community and make both platform tokens stronger in the long run.

4 Likes

Probably this is the only VIP so far that has made everyone happy and on a positive note. Great to see such collaboration happening here on venus and please do it ASAP.

6 Likes

Certainly is a reasoned and efficacious proposal that should bolster both platforms. Hopefully, we’ll see this long-overdue matter resolved swiftly! Fully approve

4 Likes

This is an awesome proposal, I 'll vote yes, because it will benefit both platforms and finally autofarm users will be receive their tokens back.

3 Likes

Venus should return money that does not belong to you, and you should respond positively instead of just avoiding it.

3 Likes

I vote yes for this proposal , it hurt me

3 Likes