I appreciate the new Venus team taking the time to conduct the AMA today, however a pressing concern still remains: How will the exploit-affected users be compensated? Here is the relevant excerpt from the AMA:
"11. I know that although JL is no longer a member of the Venus team, he mentioned that those who were liquidated at XVS & SXP on May 17/18 will be compensated. I understand that VIP-29 is very important for platform protection, but investor confidence is more important. There are enough funds in the treasury to deal with this problem, and new tokens can be minted to make up for the loss.
A：JL said at the time that Venus was considering compensation for those who suffered losses due to the liquidation, but he did not give a reasonable plan. We believe that compensation for users who have lost due to liquidation means hurting those users who have responsibly controlled their loan ratios during extreme market events, and it would be unfair to users who still hold XVS. Because the budget required for compensation to be provided by venus, this needs to be decided by the XVS holders. We feel that the community can further discuss this matter."
Building onto the above, it is important for the community to discuss this. If i remember correctly, the protocol had about 6~ million XVS deposited on Venus around 17/18 May. The exploiter addresses had over 1 million of this XVS, and the remaining 4.5~ million was held by Venus users. We should take a screenshot of the vXVS balances from 17 May and compensate the holders 1:1 from the unreleased supply, and this has already been suggested a month ago here. If we can use 3.3M xvs to reduce bad debt of the protocol, we can also use another 4.5~ million to compensate the millions in losses faced by the loyal users.
This is not an unreasonable solution as the XVS will be awarded to all vXVS holders, regardless of whether they were liquidated or not, so it removes the argument of this being unfair to those that managed their debt levels well (which is a flawed argument imo, because nobody accounts for a 70% price manipulation dump within 8 hours)
We got rekt by the exploiters and the liquidators, and it is only fair that we be compensated. Ideally, people should be compensated for other crypto liquidated as well, but given the nature of the current situation, at least 1:1 vXVS compensation is absolutely reasonable. This platform is backed by Binance, it would make for a lot of bad PR for people to know that in case the platform gets exploited, they will not be compensated despite the platform having $20M+ in reserves/treasury and around 60% of unreleased token supply
Let’s come together as a community and finalize this as soon as possible.
Hoping for a thorough discussion.