Proposal Summary
This proposal seeks DAO approval to reimburse affected partners who incurred losses during the recent liquidation event caused by network fee updates. The incident, which occurred on November 19th, 2024, highlights the need for improved communication, transparency, and operational measures. A reimbursement of the full liquidation amount per eligible cluster is proposed to offset losses and restore partner confidence.
Motivation
The recent liquidation incident exposed deficiencies in the network fee update process, resulting in unforeseen losses for certain partners. While the protocol parameters were followed as intended, insufficient communication and notification of the fee deviation led to liquidations. Addressing these losses through reimbursement reflects the DAO’s commitment to fairness, trust, and collaboration.
By implementing this proposal, the DAO can:
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Restore the confidence of affected partners.
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Demonstrate accountability and commitment to improvement.
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Strengthen relationships within the SSV community and ecosystem.
Proposal Particulars
Objective
To reimburse affected partners for their losses during the liquidation incident and implement safeguards to prevent similar issues in the future.
Scope
Reimburse partners who were liquidated due to the fee deviation on November 19th, 2024, according to this list of transactions as filtered on Etherscan.
Reimbursement Mechanism
Identification of Affected Clusters
On-chain data was captured for the 19th of November after block 21220583, when the network fee was updated, to identify the clusters directly and immediately impacted by the increased network fee. Those entities were filtered using Etherscan and compiled into the list below. As of the posting of this proposal to the ssv.network forum, the ssv.network users can submit their claim if they believe they have been affected. This claim has to contain on-chain blockchain explorer proof that they were affected. If the claim is valid, such user’s addresses will be added to the list of eligible clusters for the final version of the proposal that will move to snapshot. Only the affected clusters reactivated within 7 days of liquidation are considered. Only clusters that meet the established criteria for reimbursement will be approved.
Distribution of SSV Tokens
The Master of Coin will propose a batched transaction to the DAO multi-sig to release the approved reimbursement amount in SSV tokens directly to the cluster owner’s address, ensuring a direct and efficient transfer process. The cluster owner’s address is taken directly from the liquidate() call of the corresponding TX, as recorded in the eligibility list provided.
Eligible Clusters
| tx | Owner Account | Liquidated Collateral | |
|---|---|---|---|
| 1 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0xfd519cf55f8845BD311eE0E8d257FeBAfF3f6Bac | 38.2745299 |
| 2 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0xda1942E8E5881DfC850BDEca0C4777d92c322184 | 34.28506148 |
| 3 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0xc86B8B29926488FaBe686755a1c8e1C8a077aBdb | 48.6675059 |
| 4 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0xc86B8B29926488FaBe686755a1c8e1C8a077aBdb | 48.9918469 |
| 5 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0xc86B8B29926488FaBe686755a1c8e1C8a077aBdb | 48.2141409 |
| 6 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0xc86B8B29926488FaBe686755a1c8e1C8a077aBdb | 48.20458772 |
| 7 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0x85Ca05D933d5b5fdFe928Db77c45367965aAD308 | 35.9369862 |
| 8 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0x840541529e28564c1795DFeFe5fEC26fa557f778 | 50.45342008 |
| 9 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0x765f6eeac5C5b555191c15e01Cc0b3cf88073Ca3 | 21.28381764 |
| 10 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0x7465169A70212f7069623E7eA4e86605a8096D54 | 35.652393 |
| 11 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0x7465169A70212f7069623E7eA4e86605a8096D54 | 35.54570726 |
| 12 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0x6B7468504757a4918a96078F352572d172115263 | 15.78466178 |
| 13 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0x12c1eF3208de4805Ba4Ac3fEa6A4F132f8D31243 | 3.042187321 |
| 14 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0x5f241267040426B30308D0A72e10FA182Ad7caC6 | 31.89266169 |
| 15 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0xda1942E8E5881DfC850BDEca0C4777d92c322184 | 43.8859931 |
| 16 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0x5f241267040426B30308D0A72e10FA182Ad7caC6 | 24.01863204 |
| 17 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0x30e3056A42D84f9998F3CfC57dB63373fC882b26 | 42.17667388 |
| 18 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0xa5F2Bb69633825C51aAaB6337C7B5C61818feaD2 | 48.17320854 |
| 19 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0x7465169A70212f7069623E7eA4e86605a8096D54 | 35.66902487 |
| 20 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0x499b628441903598F68AC97f62bB817882938246 | 16.84742928 |
| 21 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0x126beae9F195016015560517b388212d42668e4F | 41.81425841 |
| 22 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0x089E4537BC114Ee3D5f518F072C3B9045095526D | 30.86916019 |
| 23 | Ethereum Transaction Hash (Txhash) Details | Etherscan | 0x170F48123eF348A874B237BC442963754f0a45e6 | 55.09356422 |
Key Metrics and Success Indicators
- All partners are reimbursed the full liquidation collateral for each of their clusters
Budget and Funding
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Reimbursement Total: 834.7774523 SSV
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Source of Funds: DAO Treasury
Risks and Mitigation
Risks:
- Misallocation of funds to ineligible clusters.
Mitigation:
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Rigorous verification process to confirm eligibility.
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Transparency in reimbursement execution through DAO channels.
Next Steps
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Verify affected clusters and finalize reimbursement calculations.
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Approve this proposal through a DAO vote.
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Execute reimbursements via multi-sig wallet.
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Implement enhanced notification and documentation measures to prevent similar incidents.
Supporting Materials
- Network Fee Documentation: DAO Controlled Network Parameters Feed [Evergreen]
Conclusion
The reimbursement proposal is a critical step in addressing the recent liquidation incident and reinforcing trust within the SSV community. By approving this proposal, the DAO demonstrates its commitment to accountability, transparency, and operational excellence.
Voting is now live.