Compensation Plan

bZx DAO has voted on and approved the compensation plan to refund victims of the attack on November 5th, 2021. The compensation plan was a community led initiative originating from the forum discussions. Following a lengthy forum discussion a community consensus was formed and the plan was submitted for snapshot vote, then DAO vote and subsequently approved by the DAO.

Following the approval of the plan, the treasury has released the funds and the proposal has been implemented. Users who suffered losses as a result of the hack can read below to learn details of the plan, and how to claim their tokens under the compensation plan:

Details of Compensation Plan

BZRX Token Compensation

Details of the final plan are set out in the snapshot vote. All those who lost BZRX in the attack (except for the development team) will be compensated in full directly from the bZx DAO with BZRX. This will involve a payment of about 20m BZRX, or less than half of the liquid BZRX in the treasury directly to victims.

The development team’s personal losses of BZRX will also be compensated in full, but they will be paid in vBZRX (not BZRX) which will vest slowly until July 2024.

Debt Token - P125 Compensation

All other losses resulting from the attack (in all other tokens) will be compensated by issuing a debt token at a 25% premium to be repaid over time by the protocol from 30% of protocol revenue and fees (so protocol revenue breakdown will be 50% to Ooki/BZRX holders, 30% to debt token and 20% to treasury).

The name of the debt token is P125, this token will be distributed as compensation for the attack in Nov 2021 that resulted in user funds being stolen by an attacker P125 has a face value of $1, and is issued with a 25% premium to those who lost funds in the incident (so each $1 lost receives 1.25 P125).

The protocol will buy back P125 every month using 30% of all protocol revenues (up to a P125 price of $1) and in this way eventually reimburse all losses suffered as a result of the incident.

Any assets recovered from the attacker (unknown at this time, although there is speculation that some of the USDT may be recoverable) will be given directly back to the victims who lost that particular token. So for example, if 50% of USDT is recovered, then it will be shared among all victims who lost USDT in proportion to their losses, and their allotment of the debt token accordingly reduced. However, this only applies until the debt token is issued and claimed. Once the debt token is issued, all recoveries will be used to market buy the debt token and benefit all victims equally. This is done to prevent double-dipping by victims of the recovered currency - you cannot get debt tokens for all your losses AND get a share of the recovered assets.

How to Claim

Users can claim their tokens under the plan by following the instructions described below. A dedicated compensation page has been developed which will allow users to check the tokens they are able to claim under the compensation plan. This reimburses users who lost BZRX in the following pools: bzrx lost in infinite approval, ibzrx, pgov/bgov, masterchief, sushi lp.

For users who still have Frozen BZRX on BSC:

The debt token issuance:

About the author
Contributor to bZx