Indexed

Summary

Drain the affected index pools and their market pairs and upgrade the unaffected index pools to remove the vulnerability.

This action was approved on Snapshot in this proposal: https://gov.indexed.finance/#/proposal/QmaGzhQ9haHQoYBJyUSnwgM96DZtQoDyni5DEPEBNagbLo

There is a discussion thread here: https://forum.indexed.finance/t/proposal-compensation-mechanisms/801/9

Rationale

The index pools have all been damaged by the attack to such a degree that they are not worth fixing. Holders who have not yet burned their tokens are simply losing value to arbitrage, as are Uniswap liquidity providers.

These assets should be sent to the treasury to be used in compensation efforts.

Actions

The actions directly executed by this proposal are:

1. Transfer ownership of the proxy manager’s access control contract to the recovery contract.
2. Execute the drainAndRepair() function on the recovery contract.

The call to drainAndRepair() on the recovery contract will:

1. Change the proxy implementation for the core and sigma pools and the core UnboundTokenSeller contract to the recovery contract.
2. Drain the remaining assets from DEFI5, CC10, the CC10 UnboundTokenSeller and FFF to the Indexed treasury.
3. Drain the ETH from the DEFI5-ETH, CC10-ETH and FFF-ETH Uniswap pairs to the Indexed treasury.
4. Execute fake deposits of 2**128-1 of DEFI5, CC10 and FFF to Polygon.
   • These deposits will be received by a gnosis safe owned by the sigma committee and will be used to drain the assets in the DEFI5, CC10 and FFF market pairs on Polygon, which will be sent to the treasury.
5. Upgrade the proxies for the core and sigma pools and controllers in order to remove the exploited vulnerability and disable the affected contracts.
   • To prevent issues with staking rewards, DEFI5, CC10 and FFF will not be destroyed. An intermediate fallthrough proxy will be used for the pools that disables all functions except balanceOf on the affected pools and delegates to the fixed implementation for the unaffected pools.
6. Destroy the CC10 UnboundTokenSeller.
7. Set the core UnboundTokenSeller implementation back to what it currently is.
8. Transfer ownership of the proxy manager’s access control back to the treasury.

New Contracts

IndexPoolRecovery

Github: https://github.com/indexed-finance/recovery/blob/master/contracts/IndexPoolRecovery.sol

Deployment: https://etherscan.io/address/0x2cbB98cc5d587087633614fA9d4Ea88C70A86821#code

IndexPool (core)

Github: https://github.com/indexed-finance/indexed-core/blob/master/contracts/balancer/IndexPool.sol

Deployment: https://etherscan.io/address/0x669693A42B58E87b9e568bA2C6AdD607eb298d95

SigmaIndexPoolV1

Github: https://github.com/indexed-finance/sigma-core/blob/master/contracts/balancer/SigmaIndexPoolV1.sol

Deployment: https://etherscan.io/address/0x7B3B2B39CbdBddaDC13D8559D82c054b9C2fd5f3

MarketCapSqrtController (core)

Github: https://github.com/indexed-finance/indexed-core/blob/master/contracts/MarketCapSqrtController.sol

Deployment: https://etherscan.io/address/0x78b4f45B4A2Afa333C7Be1dbc7F2c9F056615327

SigmaControllerV1

Github: https://github.com/indexed-finance/sigma-core/blob/master/contracts/controller/SigmaControllerV1.sol

Deployment: https://etherscan.io/address/0x4561784841DE5335922a9ad3E44aba69a162bA7A

CoreFallThrough

Github: https://github.com/indexed-finance/recovery/blob/master/contracts/CoreFallThrough.sol

Deployment: https://etherscan.io/address/0x84dbd48c487032d2bd363cc74605e2690d3a95eb

SigmaFallThrough

Github: https://github.com/indexed-finance/recovery/blob/master/contracts/SigmaFallThrough.sol

Deployment: https://etherscan.io/address/0x92bd1aa95ca9265eab2af8ac1b536aa995d8fc37