Aavegotchi

Author: @Maxicrouton GotchiID: #4285 Quorum requirement: 20% (9M) Vote duration: 3 days Links to Discourse: https://discord.com/channels/732491344970383370/734081492967489576/1103717472034627684

Hello everyone,

Just wanted to inform you that we have received about 763,000 GHST from GotchiVault (GV) after the 0vix exploit.

To summarize the exploit: The 0vix exploit involved market manipulation by driving up the price of vGHST, which was listed on 0vix. The hacker bought a huge amount of GHST, sent it to GV to increase the vGHST price greatly. Ultimately, the hacker made off with over a million dollars from deposits made by 0vix users, but to carry out the exploit, they had to give about 1 million GHST to GV. (Giving a lot to LP fees/MEV/market makers/arbers too)

GotchiVault then voted to return 20% of the GHST obtained from the hacker to 0vix and 80% to the Aavegotchi DAO. The DAO must now decide what to do with the funds.

We can either wait for a proposal from the 0vix team, or I can submit a snapshot proposal in the next few days. I see only two options for these funds:

A) Return them to 0vix. B) Return them to GotchiVault (and publicly state that it is not our business).

Keeping the funds is not an option for the DAO in my opinion.

Here are my (personal) thoughts on the matter:

1. I don’t like the fact that GotchiVault passed the hot potato to us.
2. 0vix was foolish to list an asset that had been manipulated in the past (just look at the chart). Aave had “frozen” the GHST market after the end of the curve.
3. I really don’t want the DAO to keep the funds. Let’s return them to GotchiVault or 0vix, but really, we should not keep them.
4. The DAO should not suffer from this hack and should not bail out any party.
5. The DAO can provide a GHST buyback (pending snapshot vote, obviously) for the 1 million dollars of GHST to avoid a huge market sell.
6. I think the best solution is to return the funds to Ovix and discuss a buyback of those funds with them.