[Tiered Repayment Proposal amendment] Whitelist 5,000 users of the Anchor-based Stablegains (custodial) app for relief

Hi everyone. My name is Kamil Ryszkowski, I am one of the co-founders at Stablegains, an app that launched last year on top of Anchor Protocol.

I am reaching out to the community on behalf of our users, asking that they get included on equal terms to non-custodial UST holders in potential relief funding.

Background

Stablegains is a custodial app that gave people convenient access to Anchor yields. We introduced and onboarded thousands of users into the Terra and Anchor ecosystem.

The custodial nature meant that we were able to offer users a number of benefits - including covering all gas fees, a direct fiat on/off-ramp without having to safeguard wallet keys, added security features and more. Our users appreciated the simplicity and extra benefits we brought on top of Anchor’s yield on UST. We averaged a 4.5* rating with over 450 ratings on the App Store, compared to e.g. 3.3* and 3.6* from well-funded CeFi competitors like Celsius and BlockFi.

Stablegains grew quickly and was part of Y Combinator’s most recent cohort. Our ambition has been to make the benefits of DeFi accessible to everyone.

Anchor Protocol has been the first and only protocol we integrated with so far; last month, we raised funds and have been more excited than ever to hire a team and get back 100% to building, growing and introducing more people to more opportunities in DeFi. We did not make it in time before the crash.

Situation now

Before last week, we had almost 5,000 users. They are regular people, curious about DeFi and hoping to get a better deal than what banks had to offer, for the seemingly low risk of lending stablecoins. We informed users of the potential benefits and the risks, including market volatility and depegging, but it is still extremely unfortunate that those risks materialized.

We want to help our users in any way we can, and it would be unfortunate and undermine the spirit of the proposal if users did not receive anything from TFL/LFG just because they decided to access the ecosystem via Stablegains, and were happy for us to hold their assets in thousands of users’ names.

The tiered repayment proposal has been attracting a lot of attention (almost 1,000 likes on the forum already) and support from people like Vitalik Buterin.

We also think tiered repayment is a fair way of dealing with this, compensating the highest possible number of affected users.

However because we operated in a custodial way pooling user funds, I am extremely worried that our wallet could get excluded, and our users - people in the same boat, suffering just as much as non-custodial Anchor users - will not be part of the potential compensation package.

Proposal

Here is our pooled wallet address: terra1pdqqe9cpt0pm2gx9ecr4azyrh3nd5l2cjrjhjn. The day before the UST depeg, our users’ funds totaled 47,611,058.03 UST from 4,878 depositors.

My ask is to whitelist the Stablegains wallet to fully participate in any compensation package that might be presented.

Myself and the Stablegains team are available to work with the right decision makers, auditors and the community, and provide any documentation necessary (respecting our users’ privacy) that these funds belong to our users, not us, and will be disbursed exclusively to them. We are happy to disburse them based on the same principles and limits as for non-custodial aUST holders.

I hope that as a community there is at least something that can be done to help our users - regular people that also put their faith in Anchor and Terra but via our app.

89 Likes

I support this

4 Likes

Being one of the many users affected by this, I also support this. It seems only fair that ALL user impacted (not just those who are non-custodial) should be considered.

5 Likes

As a user of Stablegains and deposited funds, I support this.

5 Likes

I am a Stablegains user and fully support this proposal.

3 Likes

I am a Stablegains user and support this measure.

1 Like

Hello, I am one of the Stablegains users that has been affected and I support this.

3 Likes

I put my trust in the anchor community and as a struggling college student, the returns on the stable coins account seemed like a good way to grow my savings. Stablecoins such as terrausd we’re known for being stable and consistent and so I was unprepared for the risk of depegging. I have now lost almost everything :pensive:

Please include stable gains users such as me in any such proposal. Anything will help at this point

5 Likes

I fully support this.

4 Likes

As a user of Stablegains I support this. This was my first entry into defi, and Stablegains made it easy for inexperienced users like me to participate. I imagine a lot of other users are like my in that regard. The events of the past week have been devastating to my family’s savings. Whitelisting Stablegains users in will reinforce our faith in the defi community. Without this many of us will never be able to trust again.

Thank you Kamil for advocating on our behalf.

4 Likes

I am a user of stablegains and this sounds fair.

My question/challenge is my only crypto exposure is via stablegains. I have zero experience with other crypto handling. I deposited via ACH. Will i be able to withdraw that way?

If not i am going to need significant assistance to learn from scratch how to handle a crypto based refund. I would imagine that the simplicity of stablegains mechanism means i am far from alone.

How with people like me be managed?

Thank you,
Chris

3 Likes

Considering Stablegains users were prompted by SG management to move their funds out in UST during this depegging event after they couldn’t transfer their own funds to their bank, they (myself included) should be compensated as well for the balance in their Stablegains account. If this will be done, I agree.

I have also not sold any of my UST during the depeg event to date. Users like myself who HODLED the whole time when @dokwon showed signs of possibly repegging should still receive back their initial investment.

12 Likes

I support this action. I am a Stablegains user that deposited USDC valued at $xx,xxx.xx, at a 1:1 USD rate. And according to the agreement I agreed to, my deposit were to be denoted in USDC (not UST) on the app. I didn’t agree to converting my USDC on the app and displaying it as UST, so I expect to receive exactly the amount of USDC I deposited. You can keep the rest of the ACH and “interest”, Idc.

6 Likes

I support this

As a user of stablegains, I support this.

Apoyo esto, pero ahora mismo, la prioridad deberĂ­a ser la quema de tokens, en unos meses, se podrĂ­a ayudar a los damnificados. Pero una vez que el precio de luna recupere 1$. Ahora mismo, la Ăşnica soluciĂłn es quemar y quemar y quemar y quemar todo el supply que han creado los inconscientes, inconscientemente.

I still have all of the UST sent to my kraken account from Stable Gains. Would I be able to send it back to the wallet address you provided if they agree?Or would it not be necessary for compensation?

3 Likes

I support this assuming it includes people like me that took the money out via UST transfer to Kraken. I have not sold any. It is just sitting there

2 Likes

Thanks for advocating on our behalf, Kamil!

1 Like

as a stablegains user i support this with the caveat that Kamil and his SG team document the funds going back to the users completely including those whom they allowed to withdraw UST and USDC at an 80% loss. otherwise this restitution goes to their pockets after defrauding users. they never disclosed depositors funds were 100% in UST, in fact they denominated accounts in dollars and lied about being diversified.

5 Likes