Yes people should keep in mind that a compromise has better chances to be voted for.
2 Likes
I agree as I is got liquidated but put in thousands and thousands of dollars to pay down my loan and it still spiraled down because of the rebalancing and within hours everything I paid down it taken out in a loan again from the rebalancing. Which I know I am not the only only who would off other assets at a lost and was still liquidated. So it hurts more losing other assets with it being in vain as I still lost all my icx.
So let’s get the 33% refund votes one and THEN let’s focus on something for everyone else we can vote on
4 Likes
i think Cheil has this laid out well.
It probably should be one vote that combines the two issues into one for a higher chance of success. I’m thinking the @particleX proposal plus another proposal that accounts for the non-liquidated borrowers, into one vote. Then everybody wins and get their fair solution. After everyone is pleased, we start building again and stand together like the great Icon community we have been for years.
4 Likes
Agree, but I can understand potentially adjusting the 33% to 25%. I think it is more fair that way by taking out the 10% the liquidator got. This then leaves additional in the emergency fund.
1 Like
Title: Return 1/3 of seized collateral to all borrowers liquidated between Jan 20th and Jan 24th 2022 AND COMPENSATE ALL NON-LIQUIDATED BORROWERS BETWEEN JAN 20TH AND JAN 24TH 2022 WITH THE REST OF THE EMERGENCY FUND (CALCULATED BY THE USERS’ AVERAGE LOAN AMOUNT BETWEEN JAN 20TH AND JAN 24TH 2022).
Eligibility to claim sICX: Balanced borrowers liquidated between Jan 20th and Jan 24th 2022 AND NON-LIQUIDATED BALANCED BORROWERS BETWEEN JAN 20TH AND JAN 24TH 2022
Amount of sICX to use: ALL sICX HELD AT THE EMERGENCY RESERVE
Trying to combine the 2 issues in this proposal above. This is @particleX proposal plus goodwill to the non-liquidated borrowers. What I added to the proposal is in bold font. This proposal accounts for both issues (the liquidated and the non-liquidated borrowers) and everybody gets their fair share. It’s the best I can think of for a compromise.
6 Likes
100% agreed! Everybody affected gets something and in a best possible calculated way. I support this.
1 Like
I think you are on the right track. I think if we did something like the below all as one proposal it would have the greatest impact on the community. This way it took all parties into account and everyone had something positive to vote for. I think the liquidated should be helped most, but I do agree also helping everyone. This would still be 3% less from the emergency fund (originally 33%). I am confident our community can work to create the right proposal and I think things are moving in the right direction.
25% collateral back to the liquidated from the emergency fund
5% back to all borrowers from the emergency fund
5% from the DAO to all borrowers.
1 Like
This could work too. I think we should use the entire emergency fund for this case and don’t let anything be left. It’s meant for emergencies and should be used for that. If there is a new emergency like this in the future, the emergency fund will yet again consist of new liquidation money. It’s also clear that the liquidated borrowers were hit hardest and need to be prioritized. I think they should get closer to 30% of their collateral back. I’m also for compensating the non-liquidated borrowers like suggested above.
1 Like
It’s good to see that we are meeting more into agreement!
1 Like
I should clarify, I meant…
5% to the unliquidated borrowers (Not all borrowers) from the emergency fund.
Other 2 bullet points remain the same
First, thank you for your hard work. I think it would be beneficial to slightly revise your proposal to make it something positive for everyone to vote on. I think tweaking the proposal to help everyone in the community would be best received and strengthen the community. Below are some suggestions.
Instead of 33% of collateral to those liquidated from the emergency fund I think it would be better to break that up into 2 sub groups:
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25% of collateral back to the liquidated from the emergency fund. And…
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Use the spare 5% in the emergency fund to distribute among the unliquidated.
(This breakdown leaves an additional 3% in the emergency fund as well Vs the 1/3 scenario)
Secondly, someone mentioned we could do a 5% DAO distribution to all. I think this is a secondary rider that could or couldn’t be included depending on feedback, but having it all in one proposal would be best (agree with Cheil).
1 Like
Raymond
Hi to all the community I have been reading all of the discussions on balance. I am a ICO buyer my icx account had roughly 370k ICX my loan was roughly 150k. When the market was crashing I transferred roughly 60k to 80k to bring my liquidation price down from 0.84$ to around the 0.50$ to 0.60$ region. While I was doing this my loan was going up infront of my eyes drastically each 20k I paid of towards my loan it would go down roughly 0.04$ off my liquidation price but then instantly it would add about 0.01 to 0.02 and 10s of thousands to my loan I stayed up all night selling other coins at loss to pay down my loan because my coins where locked but it still liquidated me while I was asleep giving me A balance of 420k icon so plus 50k icx which forced me into liquidation I feel that I have been stitched up my whole 4 years of crypto gone in 1 night due to the rebalancing mechanism going out of control it is not stated properly about this on the UI and people should have there icx back but they say we must vote for what they took double what I owed when they should of paid of the loan with the balance and anything remaining should be returned or still be in my icx wallet on balanced I am very upset with everything that has happened my loan was 150k and my portfolio was 300k I should have half of my portfolio back roughly if this is not ammended immediately I will lose all hope in balanced and the rest of my friends and family that have invested in to this a big step needs to be made the emergency fund should pay everyone out from what is stated in the discussion 20th to the 24th of jan where the rebalancing went out of control and ruined people I take loans with nexo all the time they never take your whole balance just what is owed I can believe the system failed but it is there job to reinburse us recent liquidated clients first and if this is not done properly then that is theft,fraud and icx and balanced will lose alot of good icx hodlers believers.This should be dealt with immediately and then just maybe people might stick around like myself who believes in the icx ecosystem. I dont know how many coins extra was giving to me of liquidation but i last saw 420k icx from having 370k I really hope balanced and icon can work and sort this out as balanced being the bank of icx.
3 Likes
Title: Liquidation fee refunds and bnUSD Support Appreciation Proposal
Eligibility to claim sICX: Balanced borrowers liquidated between Jan 20th and Jan 24th 2022
Eligibility to claim BALN: All borrowers on a yet to be specified block between Jan 21st and Jan 24th 2022
Amount of sICX to use: 1/4 of the liquidated amount - 1.465M sICX out of the 2.27M sICX held in the emergency reserve. Roughly the same amount of sICX that was added to the emergency reserve in said timeframe.
Amount of BALN to use: 100k BALN from the emergency reserve.
During the heavy rebalancing many borrowers got liquidated due to locked collateral and increasing loans. Maintaning a loan was difficult for all borrowers and many users had to sell multiple assets for a low price. There is a general agreement that some refund should be made, and that we should also keep in mind that the borrowers that did not get liquidated also had losses keeping the value of bnUSD stable. As a crucial asset of the balanced ecosystem this proposal will return the sICX added to the emergency fund and reward the borrowers for maintaining the value of bnUSD.
Key Points:
- The sICX refunded to the liquidated accounts is (roughly) the same as the sICX added to the emergency fund from those accounts. Making it like it never happened for all other balanced users. Liquidated accounts do not get a refund for the liquidator fees.
- Many borrowers that did not get liquidated had to sell many assets at low prices to prevent liquidation causing losses due to the heavy rebalancing. The BALN out of the emergency reserve will be distributed as a reward and appreciation for protecting the value of bnUSD.
- The snapshot block for borrowers that can claim the BALN will be chosen at a block betweent the 21st - 24th of Jan. A strategic block will be selected as the rewards are intended for the borrowers that kept the bnUSD stable untill the end. Liquidated borrowers therefore do not receive these rewards unless they started a new loan or were lliquidated near the end.
- The BALN will be destributed pro-rata the loan amount.
- This is a unique opportunity to show the community strength and making balanced and Defi more accessible in the long run.
I am open to alterations in numbers or percentages. This is just a proposal.
Also English is not my native language so feel free to adjust some parts to correct errors or make it more clear.
4 Likes
Emptying the reserve fund sounds like a really bad idea. We just had to take severe measures to keep the protocol alive and it is still hanging by a thread. The peg is way off, LTV is very high and another dump would really be devastating. Yet you propose to take away a small buffer we still have.
As an analogy consider this: A town is on fire and 30% of houses are burned to the ground. The fire is under control but the risk is still high. Obviously everyone wants the people who lost their house to be compensated. To do this some of the fire equipement that is currently not neccesary to keep the fire under control is being sold. Sounds like a terrible idea right?
It increases the chance of more houses being burned down and it would make compensation of future burned houses even harder. Yet, this is what you are proposing…
I am absolutely open to refund some portion of the reverse funds, but I think we should wait until the dust is settled, Balanced survived and neccesary protocol changes are made. This is not the case now, maybe once TVL is back to sane proportions and bnUSD is stable around 1 we can assess the damage done and come up with proper compensation. Now is not the time and this proposal increases the already very high risk even further. A very bad idea in my opinion
I can agree with this one. As I i believe the refund should stay at 1/3 and not go any lower then that.
If we combine them like how @iconist has it, I see this passing. It has my vote.
5 Likes
I think this is decent, but I think the window should be a little bigger than Jan 23-24. Jan 21- Jan 24 seems like a more fair window.
3 Likes
Yea we can open it up a bit more. However I do like the idea that it is specially for the borrowers that defended the peg through all of it. Maybe 22-24?
I also liked your earlier idea to also distribute a portion of the sicx from tje reserve fund to all borrowers but I fear that it will become too complex maybe
Yeah that was just a thought. I dont know the complexity of it backend. I think Jan 21-24 is fairest.
1 Like
This sounds like a much more reasonable prosopol than the one by @iconist. It doesn’t empty the reverse fund and acknowledges the important role of people who managed to stay liquid.
However, I really feel we should wait before rushing into compensating people so soon. There are 3 related reasons why waiting now is a better option:
- The protocol isn’t fixed. This should be done first, or at least be started first. The series of events that led to the liquidation cascades were not even that extreme. ICX may fall another 50% percent next week or month and then what?
- The dust isn’t settled. Not only is the protocol not fixed, at this moment it is even at much higher risk than around Jan. 19. The bnUSD peg is way off, the TVL is too high and a next dump would be really devastating.
- It has only be a week. I know, a long time in crypto, but still. People are emotional and this rarely leads to the best decisions.
I would suggest to allow ourselves some time to fix the protocol, let the dust settle and calm down. After a month or so, we are for sure much clearer on which next steps are the most beneficial for the platform and do most justice to everyone that suffered from recent events.
1 Like