Distribution of the recovered uXAU
As explained in postmortem 7, youves core contributors managed to buy back 5.401599759786 uXAU from the most active exploiter, at a price of 7000 USDT, roughly the amount the user had spent to buy the uXAU on the devaluated market.
For this transaction, a youves core contributor did put 7000 USDT forward and received 3.642039542144 of the recovered uXAU in return (which is a valuation of USD 1922 per uXAU). The remaining 1.759560217642 uXAU will be distributed pro rata among those LPs who realized a loss on their liquidity position on the youves target flat curve.
We did analyse the impact the uXAU devaluation due to the wrong oracle price (as described in postmortem 7) on the LPs. Concerning the redistribution of the remaining uXAU, which we were able to recover, we took the following decisions based on certain conclusions:
Only LPs who did provide LP in the youves uXAU/uUSD pool will be eligible to receive refunds. LPs on Plenty are not eligible.
Only LPs who did remove their liquidity during the price deviation (between block 4235818 and 4251085) are eligible. Those who didn’t remove their liquidity at that time, were not affected by devaluation.
The four eligible LPs tz1UoKspWJewRU9ZPzeL3qR4gjfcGGX5gRiV, tz1VYa9SB4LtsHLWZnJXc1JuL7wuX46orE2Z, tz1d4649CmmMEzXBWzhTgTkFxy9ATNhb5HC3, tz1eK2rnkftFduXSBkGsCLZ4MJrwdugFmbkj suffered a collective loss of USD 6111.2 in liquidity
The recovered 1.7595 uXAU (USD 3423.41) will be distributed among these 4 LPs, pro rata of their loss in USD value. See calculations: https://docs.google.com/spreadsheets/d/1SKipSH1Juy1y9a8Bv7IX8O1X6imI1EgfNWSqLwhddrw/edit?usp=sharing
According to those calculations, these will be the amounts of uXAU distributed:
The distribution will take place next Wednesday, November 15, 2023 between 12:00 CET and 13:00 CET.
Objections?
There are various ways on how such a recovery could be calculated and justified. If you think you have legit objections to this redistribution or its calculations, please submit your objection along with the necessary rationale and calculations to Discord (uXAU channel) or Telegram until then.
Recovery of the missed baking rewards of the yyXTZ flat curve pool
After the successful yyXTZ Recovery Operation, the pool was left with 0 XTZ and 0 uXTZ. But due to the baking reward payment delays inherent in Tezos, it was expected that for a couple of cycles baking rewards for the previously high position of XTZ will be received by the pool.
youves core contributors did, immediately after the yyXTZ recovery operation, open a liquidity position in the abandoned pool. This resulted in an enormous amount of liquidity tokens being minted to the youves multisig operations wallet, making it by far the biggest liquidity holder of the abandoned pool.
Meanwhile most of the expected baking rewards were paid to the abandoned pool and core contributors were able to remove the accrued liquidity and forward it to the new uXTZ/XTZ pool (yXTZ). See operation here: https://tzkt.io/oobFVDFqaUCgCFjAFmdxJx5HdxYm1Pj2gqHDSm1RPZmY6W5hFF7/74279084/9. For a couple of days this will lead to an abnormally increased APR due to these additional payments. This operation was the last to end the yyXTZ recovery efforts.
If there are any questions about this, please reach out via Discord or Telegram.
