Summary
Following BNB Chain’s proposal to liquidate the BNB exploiter’s debts, we propose to service the BTC and ETH shortfall into solvent debt by using moveDebtDelegate with the BNB exploiter’s account.
At the end of this operation:
- The BTC and ETH bad debt will be reduced
- Venus maintains the BNB liquidity
- Another whitelisted liquidator in VIP-79 will still manage the BNB exploiter’s account health
-The BNB Exploiter will carry additional debt, now defined across other markets
Steps
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Upgrade the existing MoveDebtDelegate contract to repay BTC and ETH debt for whitelisted borrowers according to the shortfall accounts.
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Following from VIP-215:
The MoveDebtDelegate is a permissionless contract that will allow any wallet to interact with it via the function moveDebt. The expected flow is (it would be similar for ETH):
External BTC providers (any wallet) repay BTC borrows on behalf of the BTC shortfall borrower, via the MoveDebtDelegate contract
In the same transaction, the MoveDebtDelegate contract will borrow the equivalent amount of BTC or ETH, on behalf of the BNB exploiter 0x489a8756c18c0b8b24ec2a2b9ff3d4d447f79bec, and it will send those tokens to the external BTC provider, to compensate for their contribution
At the end of the operation, when every BTC in shortfall is repaid:
The BTC shortfall will be eliminated
The BTC providers will receive in USDT,USDC, BTC and ETH the same amount provided in BTC. Net value for these providers: 0
The debt of the account 0x489a8756c18c0b8b24ec2a2b9ff3d4d447f79bec will be increased, distributed between USDT,USDC, BTC and ETH.
There isn’t any economical incentive to interact with the MoveDebtDelegate: the USDT, USDC, BTC or ETH received from the MoveDebtDelegate contract will be the equivalent amount to the BTC provided (according to the Venus oracles).
