Indexed

https://forum.indexed.finance/t/proposal-compensation-mechanisms/801/9

In the aftermath of the 14th October 2021 attack on Indexed Finance, the DAO needs to decide whether or not to destroy the affected tokens and drain the associated liquidity in order to fund the compensation plan.

To be specific, the affected tokens are/were:

• DEFI5
• CC10
• FFF

We need to be clear here: the DAO has the ability to mint as many tokens as required to drain all but 1 wei of the reserve token in a liquidity pool, and retrieve all of the assets remaining in the pools. We will also disable the contracts from acting as tokens: we can’t destroy the contracts themselves, as this would disable withdrawal of earned staking rewards.

This is - for all intents and purposes - an attack by the DAO on its own products, but for those affected that are unaware or unable to access their tokens, they are currently bleeding what little value they have left with no way to stop it. short of terminal intervention.

This is not a power that the DAO should wield lightly, and one that in all other circumstances should be vigorously opposed. Please take the time to consider exactly what it is you are voting to do here. If you vote for DEFI5, this is an approval to attack the liquidity pools for DEFI5-X LPs on all chains, whereupon the holders will be issued compensation tokens in the amount determined by other votes in this wave.

This is an approval vote, which will run for one week to allow as many members of the DAO as possible to cast their ballots.

Please vote for all of the tokens that you wish to be drained. If you do not wish to approve such an action, please vote for None Of The Above.

Given the gravity of this vote, a 50% approval vote for any option will only be considered binding if there is also a 50% approval vote in: https://gov.indexed.finance/#/proposal/QmT7WsTAVM9PFs5eHKbez3M9XWrHGDogZYKXHksPeshKML