SIL Compensation Plan Update 1

Initial Steps Taken

We have taken a snapshot of all SIL and IRON holdings from before the March 16 incident in order to compensate all affected users.

We have collected 838 compensation claims to date (please fill out the form if you haven't done so already: https://forms.gle/imiE8SYxtPRCv6kU8)

The spreadsheet with all compensation claims data received to date can be found here: https://bit.ly/3c6sFQ5

Next Steps

First of all, it is not always simple and straightforward to calculate the compensation for a particular user as fairly and accurately as possible. It requires manual work to calculate compensations for users who held their SIL and IRON tokens in farms and vaults (Value DeFi SIL-related vFarm, bVault and JurassicFarm pools) as well as those who deposited or traded on Hotbit. At the time of writing this article, Hotbit has not reached back to us yet.

Secondly, the trade-off between “compensate as fast as possible” VS “compensate as accurate as possible” is obvious. While analyzing the submitted data, we have already become aware of some unaffected users requesting compensation as well as affected users inflating the amounts of SIL and/or IRON in the submitted form. Having said that, we believe it will take us about a week to process and calculate each individual claim and propose a fair compensation (expressed in the amount of STEEL token) for each user. We will publish these amounts publicly for each user in the above-linked compensation spreadsheet. After we publish these amounts, users who wish to object to our proposed compensation amount can reach out directly to @oramis1008 or @bluestar1905 on Telegram.

Once the compensation amounts are finalized, users will be able to claim their allocated STEEL tokens via a dedicated smart contract on a page on our website.

Compensation example:

  • SIL holders: receive a 1:1 exchange for STEEL
  • LP holders: SIL>STEEL (1:1), other asset (BTCB, IRON or BNB) will be calculated in USD terms and exchanged to STEEL.

Community Voting

As part of our community governance plans is moving to a fully decentralised governance such as a DAO, we already want to encourage active community engagement for

It is for the benefit of affected SIL holders as well as current STEEL holders, many of which surely overlap, to arrange a payback scheme that protects the price of STEEL. The inflow of an additional 1 million STEEL allocated for compensation must not scare away current STEEL holders thus leading to a downward price trend.

We propose that each affected user should be able to choose between 2 payback schemes:

Option 1: Gradual unvesting of STEEL allocated for compensation over a certain period of weeks or months (linear unvesting). A separate community vote will be organized to determine the exact duration of the unvesting.

Option 2: “Quick release”, but receive fewer coins. This option is particularly aimed at those who were able to sell their SIL immediately after the incident (and snapshot) and before the price of SIL dropped significantly. They are still eligible for compensation, but also made some money from selling SIL which puts them in a substantially better position (less damage taken) than those who did not sell their SIL. Such users might be willing to accept a haircut on their compensation, receive STEEL earlier (and be liquid sooner) comparing to Option 1. For example, someone who chooses Option 2 could receive 30% of his total compensation claim in 1 or 2 weeks. But you are not eligible to receive the remaining 70% anymore. A separate community vote will be organized to determine the exact parameters for this option (percentage of coins to receive, duration of unvesting).

The community voting will soon take place via our new Governance voting page https://gov.iron.finance/#/ironbankfi.eth/all. We will inform everyone once the voting is live.

As a final note, it is very important to highlight once again that the success of the compensation plan directly depends on the price of STEEL. Therefore, please make a wise voting decision.

partial-collateralized stablecoin on bsc and polygon — https://iron.finance/

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