Compensation on Overcharged Deposits
Summary
TL;DR Funds are safe. There was a bug in the Ribbon v2 vaults where the vaults overcharged the vault fee on the first week of the user’s deposit, even when the users’ funds were not used to write options yet.
The DAO Treasury has initiated a series of transactions to compensate for losses due to this bug, and the fix is deployed to the vaults so this does not happen again.
The Bug
The issue is that users were charged management fees upfront on the week they first deposited their funds. For example, if a user deposits on Thursday, they should only be charged fees on the following week’s Friday because their funds were utilized to write options and earn premiums. The undesirable behavior was that the users were charged the fees upfront.
The Fix
In order to fix the situation, below are the steps we have taken:
We have written and deployed the fix on the three v2 vaults, ETH, WBTC and AAVE. This ensures that new users are not overcharged.
Next, we used the erroneously collected fees from the DAO to deposit into the vaults. We then distributed the compensation amounts in vault tokens to all users who were affected. The total amounts were 11.79 ETH, 0.18 WBTC and 0.55 AAVE.
DAO to vault deposit: https://etherscan.io/tx/0x99b3a4f1795b9bec29eaea1808fd96598eeb343725280e46a159aa49f43d1898
ETH compensation transaction: https://etherscan.io/tx/0xfe1fe54429dcda71016fdb46321832a3a02888704bff82ef722a4e6e4f66484d
WBTC compensation transaction: https://etherscan.io/tx/0x8ecac0e69cded56337538d82196fc1b887cfe0a33e770fb861d2c8c8d4e4a8fc
AAVE compensation transaction:
https://etherscan.io/tx/0xc6832ac8c9b38ce5a8cc7bbf476e00a6867daa6409ec8073b3f7264d783a03e4