[Proposal] Tiered repayment: 1:1 USDC refund to all UST holders up to a certain cap per-wallet using LFG funds, favouring small wallets

Agreed. This is entirely their fault.

They should be complaining to these CEXs to activate wormhole UST.

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why would he have to liquidate his position? he was never purchasing it on margin. as for MicroStrategy they have been margin called on one purchase and if BTC hits $21k, Michael Saylor wll receive another margin call.

Not true. He kept a pinned tweet on his twitter page for the weeks leading into the ponzi collapse that implied the $10 billion existed. I’d post the screen shot but they are victim silencing and delete my account every few minutes. I had a huge thread going yesterday with tons of evidenced but they deleted it. It’s the last refuge of criminals. They try to hide evidence. It won’t work though. Investigators and attorneys will show it to judges and juries who will convict. You’ll see.

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@noamha - the ones that sold at .99, .98., .97, etc. will double dip. I’ve made quite a few comments about this so you can search history. I just think those who sold (you cannot fault them) at very low prices will still suffer the most if they are to buy back at a higher price. You hit them twice while those that sold at close to peg will get basically 100% profit. If this proposal is taken seriously by TFL, etc., then, the details needs to be worked out to make everyone whole as possible and prevent folks from profitting as much as possible. Maybe it’s a combo of when the snapshot is taken, putting a cap on the redemption w/o having to go through buying UST (what if folks cannot afford to buy back UST now?), etc.

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Agreed here.

Thanks.

If the goal is to reimburse those who lost money as a result of the depeg (and not those who speculated on the peg being restored and lost money as the result of buying in at a “discount” etc.), then I would propose:

  1. Establishing the tick right before depeg
  • Before doing anything else, build a tool to assess the viability of this strategy by using withdrawal history on Anchor as a proxy. Starting from the time of depeg, identify every withdrawal out of aUST (net out in/out transactions from the same wallets), check the price of UST in each corresponding block, and estimate the amount of loss to-date. If the results are promising, go to step 2.
  1. Build out a tool where users can connect their wallet(s) and have it parse their UST/aUST (possibly even LUNA as well) balances at various snapshots. This should be relatively easy to do. Cosmos ecosystem has a lot of airdrops that are determined based on token balances (holders, stakers, LP, etc.) across multiple chains, this would just be some variant of that. Check all the usual places…pools / balances on Osmosis, ThorChain, bids on Kujira come to mind, I’m sure there are others.

  2. Use the balance at the time of depeg to establish each wallet’s maxima for UST/aUST.

  3. Assume that any withdrawal / swap activity in each of those wallets represents a sale. Wallets with no activity since depeg (didn’t sell for any reason, including limit orders not hit, etc.) can be assumed to exit at the final UST price at the time of airdrop or chain halt, etc.

  4. Cross-reference the timestamp of withdrawal / swap with UST’s price in the same block. I believe this would be relatively accurate, as UST holders fleeing depeg would likely withdraw to another chain/CEX for the purpose of swapping out of UST (to another token or fiat), or swapping into LUNA on-chain for the purpose of shoring up the chain / speculating (but this still represents a loss of UST purchasing power even if the intent is different and thus, should also receive compensation on the UST lost).

  5. Calculate the loss to each wallet.

I have no evidence for this, but I’m confident the aggregate loss using the methodology above would suggest $1B-1.5B could make most aUST holders whole, including whales.

I don’t have any good ideas on how to identify balances on CEXs that can be easily automated and robust enough to avoid fraudulent claims. Like most airdrops, I would understand if balances on CEXs were excluded entirely as a result.

Thoughts?

It’s a pretty good alternative solution and I wouldn’t hate seeing it implemented. I still think it’s second best because people who withdrew UST to their exchange a few days ago at $0.80 and held (or set limit orders) would only get 20 cents on the dollar. I’m not a fan of assuming that people sold right as they withdrew.

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Hi there, I invested all of my life savings, roughly 68K, into UST (through stablegains a Defi platform, but have now transferred it to Kraken) over the course of this past year and Im absolutely devastated and close to suicidal over this crash. If there are plans to refund my wallet back to USD that would save my life. If that’s true can someone please help me through this?

Thank you - I really appreciate the help.

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If we invest in a devtool, we can extract CEX records to, AFAIK. They still run wallets on the same ledger tech.

Totally disagree this assumption, lots of people move their UST to exchange after huge depeg happening is because afraid of the on-chain defi or even the chain will be halt and they can do nothing to their asset, they still believe given time the peg will restore, until the last minute it free falling to like 0.1, so I bet the majority of people did not sell at the price they move UST to exchange

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No one cares about chump change bets. Just watch and learn when the lawsuits and investigations take off in the coming weeks. You’ll see. Besides, they delete my account every few hours. They’re scared. They just don’t realize yet how bad it’s going to get. Billionaires are coming after them. Sovereign judicial bodies. It’s going to make the Mt. Gox post mortem look like a flea parade.

Correct. @metabrate has introduced many good points but I don’t agree with their assumption here. I would gladly have moved my UST off Terra not to sell, but just to have in safekeeping on a CEX.

@metabrate many people, including me, withdrew their UST to exchanges thinking that Anchor was going to be halted and that they won’t be able to withdraw their UST at all. We kept our UST on the exchanges for a while thinking that it might repeg but when it started to crash down close to zero, we sold. As @FatMan said, you cannot assume that everyone sold right after withdrawal and thus the price of UST at the time of withdrawal is irrelevant in many cases.

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Hi thanks for the updates.

Is this an official update from Aperture Finance?

So, every ust someone deposited into anchor, until depeg, would count?

In this case it wouldn’t matter if the aust has been put on a different protocol like edge, kujira…

Wallet address can show the exact amount I anchor by simple math (deposit - withdraw)

@Antithesis @AlbertMax I would bet a tiny minority moved UST to a CEX for safekeeping (this doesn’t make any sense to me, why would you keep it in UST if you were that afraid vs. swapping it to USDC, etc.? To save 1.5 cents?).

Regardless, I’m not sure CEX records can be verified with the same level of confidence / accuracy. However, if they can be, then I agree with you and we should of course use CEX data provided it’s as accurate and reliable as on-chain data.

Agreed!

wrapped assets wouldn’t necessarily implode if the chain detonated, as I understand it.

Further, CEXs may be inclined toward refunds if they did.

I’m sorry you’re in this tough situation too. If anyone can help us - please let us know.

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You mean the part where they repaid $9 billion in 2021?

That post mortem?