Update on April 26
We’ve allocated rCOMBO tokens and created the recovery COMBO pool. Anyone with rCOMBO tokens can start to claim their vested COMBO back on https://furucombo.app/tools.
Following the post-mortem of the exploit that occurred on Saturday 27 February 2021, we’d like to update the Furucombo community on our mitigation plan.
The core value of this plan is to onboard more community members who share our vision, so we can compensate the affected users and grow our community who believes in Furucombo’s offering to DeFi. We will walk you through the rationale and distribution schedule in this post.
Before we start, we would like to express gratitude to our community, investors, and affected users. We are grateful for your patience while we finalized this plan. The overwhelming support and encouragement we received from our community and investors have been deeply appreciated. The Furucombo community is the reason we are committed and remain committed to building the Furucombo ecosystem despite this challenging period. Thank you all again.
Alright, let’s get back to the topic and talk about the plan.
- We will issue 5M rCOMBO tokens to the affected users.
- These COMBO tokens will be subject to a 360-day linear-vesting period, starting from March 1st.
- 5M COMBO is allocated to the recovery pool. 1M from Core Team (3.85% of the original 26 million for Core Team & Future Hire ); 4M from Community Growth (7.69% of the original 52 million for Community Growth).
- The rCOMBO tokens will be ERC20 tokens, representing the rights to claim COMBO tokens.
- The rCOMBO token is transferable and anyone with the token can claim the COMBO in the recovery pool.
Rationale Behind the Numbers
The breach affected 22 Furucombo users’ and resulted in funds, made up of 21 different assets worth US$15million at the time of the exploit, being stolen by the attacker. While we are committed to compensating all users who were affected to mitigate the loss, we also have to make sure we have enough resources to sustain the project. In reviewing all the assets we have to identify how we can compensate affected users, we have also identified that US$1.74 million working capital was lost during the exploit. We have decided to keep the remaining funds to sustain the project and office operations and ensure we are able to continue our commitment to the COMBO community.
We also made a significant effort to evaluate whether we could compensate the affected users with their original asset types. However, unfortunately, we discovered that it would not be possible to return these assets in their original cryptocurrency without affecting the entire Furucombo platform and its community.
With the above challenges, we decided to use the COMBO price after the exploit to calculate the compensation amount for affected users. Considering many are already COMBO holders, we think they could leverage the rCOMBO tokens to share the right to be COMBO holders with others. Given the vesting characteristics of the recovery pool, the rCOMBO tokens could be traded at a discounted price, which would lower the entry barrier to becoming a COMBO holder.
We are aiming to create and distribute the rCOMBO tokens and the recovery pool in April after audits have been completed. While the vesting starts from March 1st, anyone with the rCOMBO token can claim the respected COMBO to date in the recovery pool.
For example, Laura has 10000 rCOMBO tokens. When she locks the rCOMBO in the recovery pool on April 14th, she can claim 10000*(45/360) = 1250 COMBO right away. And she can claim the left 8750 COMBO gradually in the following 315 days.
The overall COMBO distribution schedule can be viewed in the graph below. The weekly emission with the recovery pool is quite close to the emission without the pool, and the gap is within 4% weekly.
The composability of DeFi is the foundation of Furucombo, making compounding risk an inevitable component of this tool when protocols are aggregated together. Eliminating risk is not an easy path in DeFi but we are on this road together and confronting these challenges as we introduce more inclusive, decentralized financial tools to the world. We remain true to our beliefs in decentralized technology, and we believe we will achieve our mission together with our strong community behind Furucombo to back us along the way.
This is a difficult time, but a part of our road to success.