YIP-90: yETH Optimistic Recovery Plan

Proposals
23

The proposal has been put up for a vote on Snapshot.

24

Thanks for raising these points. I too am opposed to this plan as I feel like it isn’t balanced at all as depositors are providing open ended loan to Yearn which can take forever (most likely 20+ years) to pay back or not pay back if Yearn chooses. Staked YFI holders would temporarily lose some yield and the Yearn Treasury gave up it’s share of the ETH. For depositors, on top of it taking decades to get repaid, we forego decades of yield on our ETH b/c of this unbalanced plan.

I have been unable to participate in discussion these last couple of days due to my work schedule. And now I see it has been rushed to a vote.

In my opinion a much more balanced plan could look like this:

Loss Breakdown table for reference

Component Amount (ETH) Notes
Total Exploit Loss 3,157.401 Based on post-mortem data
Recovered assets 857.490 Already secured
Treasury Forfeiture 334.807 Boosts user floor to ~30.38%
Total Net User Loss 1,965.104 Loss minus recovered assets and minus Treasury forfeiture

Step 1: Return recovered assets plus forfeiture to depositors.

Step 2: Yearn could mint ~2,000 YFI and sell it into the market at a steady rate of say 10 YFI per day for ETH. Once Yearn has acquired 1,965.104 ETH, it could then return that ETH to depositors.

Step 3: Yearn sets aside a portion of Treasury yield to buy back and burn the YFI that was printed and sold into the market.

This is much more balanced as depositors are made whole in a year or less. Waiting a year for your assets to be returned is a long time, but much shorter than 20 years.

Yearn Treasury principal isn’t touched. But a portion of yield in the future is dedicated to burning the YFI that was minted. This serves as Yearn’s 0% interest, open ended loan. Except it is to itself.

YFI holders suffer a small, temporary (a few years) dilution of about 5.5%. Staked YFI holders wouldn’t suffer even that much yield dilution as 100% of the minted YFI will not be staked.

This is much more balanced and the depositors who are the victims here aren’t strung along for decades to get their assets back.

1 Like
25

75% for “no” so far on the snapshot vote. seems like we need some changes (or more voters)

26

Hey, as yETH depositor who lost ~15 ETH to this, I concur with this post. I think the original proposal looks at too long time spans.

From the point of view of Yearn, if the aim is truly to restore reputation damage, YIP-90 does not cut it. At this time my faith in the Defi space is shred as established, veteran protocols seem to be getting drained, this one personally being my second loss and the biggest to date. If Yearn resolved to make me whole in the span of 20 years it would mean that I most definitely won’t be touching dapps that have been developed directly or indirectly by Yearn. Having a shorter recovery path would change that vision.

That said, I do not hold any expectations nor make any demands (as if I could, lol). I take whole responsibility for the risks I assumed when I made my deposit. Just giving my 2 cents here.

2 Likes
27

yETH Snapshot Published

Community Review Window (Deadline: 00:00 UTC, Jan 26)

We’ve published the yETH recovery snapshot repository here:
https://github.com/yearn/yETH-snapshot

This snapshot will be used to determine claimable recovery amounts for the yETH recovery mechanism (per YIP-90). We’re opening a community review window to catch any issues before claims are finalized.

Key parameters

  • Snapshot block: 23914085
  • Snapshot file: snapshot.json (addresses → claim amounts, denominated in ETH)
  • Totals:
    • Total (includes Yearn Treasury exposure): 3,259.415 ETH
    • Yearn Treasury Exposure: 346.962 ETH
    • Net exposure (less Yearn Treasury exposure): 2,912.453 ETH
  • Dust threshold: claims < 0.0001 ETH are omitted (“dust”)
  • Reproducibility: the dataset is reproducible via snapshot.py in the repo
  • Review window: open until 00:00:00 UTC on Monday, Jan 26

Important: snapshot.json represents the baseline entitlements at the snapshot. The Treasury forfeiture is applied for the benefit of users as part of the recovery mechanism (i.e., it is handled during the claim process).

How to provide feedback

Discrepancies / missing addresses

If you believe your address is missing or your amount is incorrect, please open an issue here:
https://github.com/yearn/yETH-snapshot/issues/new?template=snapshot-discrepancy.md

Please include proof as of block 23914085 and any relevant context.

Integrator claim address updates (e.g., Inverse)

For integrators/lending markets, the claimant at the snapshot is typically the protocol contract (per the YIP). If an integrator needs to update which address should receive the claim (e.g., a distributor/claimer address), please submit a Pull Request to the repo.

If you held via an integrator, as described in YIP-90, recovery value is expected to be passed through via the integrator’s process. Yearn does not adjudicate internal allocations among an integrator’s depositors/borrowers.

How to verify your address

  1. Search snapshot.json for your address (case-insensitive).
  2. Confirm you held eligible assets at block 23914085:
    • Direct holders: your EOA should appear.
    • Integrator holders: the integrator contract address should appear (not necessarily your EOA).

Deadline and next steps

Please submit issues/PRs no later than 00:00:00 UTC on Monday, Jan 26.
After that, we’ll treat the snapshot as final for purposes of recovery execution.

Preparation for the recovery process is underway, please continue to monitor this thread for implementation updates and next milestones.

1 Like