Ending GIVfarm liquidity incentives programs for GIV

Hey everyone,

This is a proposal to terminate (rather than re-launch) the liquidity mining incentives programs for GIV in the GIVfarm. This includes:

  • oneGIV/GIV (Angel Vault) on Mainnet
  • GIV/ETH (80/20 Balancer pool) on Mainnet

Background (Attack)

On October 29, 2022 at 15:00 UTC the GIVfarm was hacked. The key we held to control notify reward in the farms was compromised. This basically controls the rate of rewards going out to the GIVfarms. The hacker set the reward rate to an extremely large number, harvested all the remaining GIV rewards & dumped it on the open market. They changed the reward rates for the following pools.

  • oneGIV/GIV (Angel Vault) on Mainnet
  • GIV/ETH (80/20 Balancer pool) on Mainnet
  • CULT/ETH RegenFarm on Mainnet
  • archived 100% GIV staking pool on Mainnet

Because there was a limit to the amout of rewards that could be paid out by the farms, the hacker was only able to make off with about 1.338M GIV & 162.8M CULT - this, fortunately, is only about $40,000 of GIV & $1100 of CULT.

Thanks to the GIVstream, they were only able to actually get ~25% of the rewards allocated to the farm, and we have terminated their GIVstreams. We are working with CultDAO to terminate their CULTstreams.

We have removed the compromised keys from everywhere we know of.

State of the GIVfarm

Right now, the pools that were affected look really strange. The APRs are out of this world & anyone who was farming has some seemingly crazy amount of GIV to harvest. It is, however, impossible to harvest because there is not enough GIV allocated to those farms to pay out any more rewards post-attack.

We have a team working on getting a full understanding of exactly how much rewards each address still had to claim at the time of the attack, and it is our intention to give those farmers what they earned.

In the meantime, we also need to decide how to proceed with the GIVfarm, either by restarting these rewards programs and allowing them to run as expected, or by terminating them at the time of the attack.

Proposal to end Mainent GIV liquidty Incentives

We believe that the better path forward is to end the incentives programs “at the time of attack” for the following pools:

  • oneGIV/GIV (Angel Vault) on Mainnet
  • GIV/ETH (80/20 Balancer pool) on Mainnet

Justification:

  • As a result of routing issues, the Angel Vault liquidity is not being used at all for GIV trades on Mainnet - expect for direct trades between GIV & oneGIV. MeV bots have been taking advantage of this occassionally, but tbh, unless the routing is fixed, we don’t get the benefit of all this incentivized liquidity.
  • The GIV/ETH Balancer pool rewards were set to to end mid-November and we did not plan to extend them afterwards.
  • Without a clear benefit to these liquidity pools, it is diffcult to justify the development cost that would be required to redeploy these farming contracts.

Notes:

  • We hope to relaunch the CULT/ETH RegenFarm to support our partners and plan to make up the lost rewards - awaiting their direction.
  • The GIVpower 100% GIV staking was not affected, and we are not proposing to change this pool.

Snapshot

Yesterday’s attack has made reaching a decision on this time-sensitive.

Should end Mainent GIV liquidity incentives programs post-attack?
Please vote in snapshot

12 Likes

Liked to have a discussion about them later. easier i think to END these no matter what. and if decided to continue to start fresh.
onegiv, be only if the routing aspect is fixed first. Tho, i enjoyed being in there. I’ll vote to end this for now, as it was under used.
Ending CULT, and redoing (i am not sure which is easier. fix current/or start fresh)
Ending balancer makes sense, as it was about to end anyway.
I am assuming this doesnt prevent us from setting up new pools in the future. (or i hope it doesnt) very much enjoy the givfarm setup. its fun, it feels like its a good way to garner LP.

tho it hurts too :wink:

3 Likes

I think we should keep oneGIV (and all the GIV in the oneGIV multisig) all as-is… and keep the angel vault, just stop with the added incentives (unless/until the routing is fixed). The Angel Vault is a super cool concept, but it doesn’t really help us if people can’t use that liquidity on Mainnet. I think we should continue our partnership with Ichi and talk about improvments… maybe make a new proposal later for oneGIV utility or something else.

The decision around Cult is up to the Cult team for sure. I personally think it would be great for us to redeploy & finish what we started for our partners. We can’t really fix what’s there, we’re need to end/redepoy, I think.

This totally doesn’t prevent us from setting up new pools or incentives programs in the future, we can add more/different programs if it makes sense for the DAO! just thinking to end Balancer & oneGIV because they’re not giving us enough right now to justify the extra work. Not to mention - we’d need to allocated more GIV as incentives to make up for what was stolen.

4 Likes

Perfect, so all is as i thought.
Thanks! :slight_smile:

3 Likes

The snapshot for this has passed!

We will proceed to officially end the oneGIV/GIV farm & the GIV/ETH Balancer farm on Mainnet.
Also we are still in the process of determining how much rewards to pay of the farmers who had earned before the exploit, and once we have confirmed those numbers will be sending out the appropriate amount of GIV for those addresses to claim.

1 Like

I know the vote already passed and I think it’s fine to end the current incentive programs.

Im curious…
Are there any strategies for future incentivization of mainnet liquidity?
Do we feel confident that we have enough protocol owned liquidity on mainnet to not offer some type of incentive program?

1 Like

Yeah, we are talking about this in the GIVeconomy research call. Our current strategy mainly focuses on token swaps, like one with Radicle or GTC.

We don’t have a lot of mainnet liquidity right now without incentivizing it, but since we have a lot of liquidity on gnosis, there is an arbitrage opportunity there. Anyway… we should still work on token swaps.

2 Likes

There is a chance to get buy side liquidity via a hodl vault… We are talking with Ichi about it.

1 Like

Hey everyone!

We are happy to inform you all that if you were farming in the following pools and had unclaimed rewards on the block before the exploit, any GIV or CULT you earned has now been reimbursed in full:

  • oneGIV/GIV
  • GIV/ETH Bal
  • Archived 100% GIV
  • CULT/ETH

The GIV has been added to your GIVstream and your CULT has been added to your CULTstream. Check out our Twitter thread for the announcement.

As voted by in this post, we will not be relaunching the ended Mainnet GIVfarms, but plan to launch the Cult RegenFarm this week, and it will be set to run rewards for 2 weeks from the launch date (this was approximately the duration of time left on the original farm before the exploit).

We have reimbused CultDAO for any rewards lost in the exploit (taken from our RegenFarm fee).

Excited to be bringing this chapter to a close!

2 Likes

FYI The continuation of the CULT/ETH RegenFarm is up! (called v2) - anyone can now stake LP tokens in that pool to earn CULT until the program ends on Dec 1.

Rewards start flowing tomorrow Nov 17.

Stake here or learn more!

And with that, the GIVfarm cleanup post-exploit is complete.

2 Likes