Dont lose confidence. I had 1.3M also block.
This is part of compound protecition, the team has explained that compound actually has two reserve funds to safeguard users,which is something i just learned today. i truly believe compound will slove problem today
Hello.
Can anyone help me understand whether there was a shortfall for lenders on the usdc and usds ethereum comets? And if not, how come, was it because the liquidations worked well and there were enough reserves in those comets to cover the losses from deusd and sdeusd depegs?
I imagine this is not the case for the usdt comet yet as I see -$7.6m reserves. But it seems compound itself will step in to cover this loss?
Thank you.
The final USDT Comet has been unpaused after consulting with the Foundation, Woof, and stakeholders. All markets are now functioning as expected. While we have a bias for speed, we have been careful to align with stakeholders to vet all resolution actions, keeping security at the forefront of our decision-making. This post details next steps regarding treasury reserves reallocations, USDT Comet unpause analysis, and the latest information on deUSD and sdeUSD.
Compound DAO has more than sufficient reserves (see Woof Treasury dashboard) to reallocate.
The first reallocation has already begun with this USDT v2 reallocation governance proposal
The second reallocation is coming from the ample $34M in reserves across USDC and WETH in the Aera V2 vault.
The Aera V2 vault can execute a reallocation that leverages the recipient parameter in the Uniswap routerâs swap methods. This would have the effect of swapping the vaultâs USDC holdings for USDT and allocating to the v3 Comet reserves. This 2.7M USDT reallocation is expected to take 4 days.
What has happened since USDC and USDS unpaused?
Since unpausing USDC and USDS Comets yesterday, 84% of the available liquidity has been withdrawn from both the Comets. Utilization rates increased as liquidity was withdrawn, and the borrow APY reached max rates.
Since November 7th, at 11 AM UTC, 10M USDC liquidity has returned to the USDC Comet. Based on the data we have observed with USDC and USDS Comets over the past 24 hours, we expect a similar pattern for USDT: LPs will initially withdraw, APYs will increase, and some LPs may return to supplying into the USDT Comet. Regardless, rate volatility is expected in the initial hours after unpause.
What is the latest information on deUSD and sdeUSD?
Yesterday, the Elixir team announced that they will adhere to the 1:1 peg and specifically mentioned working with Compound on repayments. Gauntlet promptly acted as the liquidator (0x7667095Caa12b79fCa489ff6E2198Ca01fDAe057) and purchased collateral from the Compound protocol.
Because liquidations are permissionless by design, anyone could have liquidated and seized the collateral. Gauntlet proactively liquidated the maximum amount permitted to increase the chance of recovery for the DAO. We were able to purchase 75% of the collateral amount, 9.44M deUSD and 6.75M sdeUSD. Liquidated collateral tokens are in a Gauntlet multisig (0x7667095Caa12b79fCa489ff6E2198Ca01fDAe057).
Next steps
We will follow up in this thread with more updates once the reallocations are complete and as we receive updates from Elixir.
Since. Thursday I made transfers in USDT on the ERC 20 and TRC 20 networks. The amounts were debited from my accounts, the transfers arrived at the recipients but went back to an account that I do not know (seen on Tron scan) My USDT accounts are no longer visible, I do not understand what is happening or how it will happen. Is it due to the network break? Will my accounts be credited back or will the recipients be credited?
Thanks for your help
Thanks for keep us safe. I hope Euler would have done the same. 2 of my positioned are lock or out of liquidity, no action from the platform no informations, no assistance and customer service no answer. When we all understand investing have risk this have to be mitigate more is possible. A temporary pause is not good for no one but if need is less of a problem then grait or total lost. last or not list anyone have any suggestion of how I should become aware of what happened to my investment in euler vault ? or I should be contacting ? better know my lost then stay in the darkâŚ..
thanks
What you are saying doesnât seem to be related to any of the problems occurred here. More likely it is a scam.
@Gauntlet, could you please clarify the amount of sDEUSD and DEUSD that you absorbed and at what price?
Additionally, if they were absorbed at a significantly lower price than the one at which youâll be refunded by Elixir, do you plan to return the difference to the Compound reserves?
You can see the transactions here. Note, we performed a number of tests and transactions with USDC and USDT before the bulk amounts. If required, I can get you a precise amount this coming week after speaking with Finance.
Yes, that was precisely the goal of the liquidations.
Thank you for your clear answer. Much appreciated!
Euler considers itself decentralized infrastructure for independent curators to permissionlessly manage risk on their own money markets, built on Eulerâs rails. The curator of the specific Euler market you used would be your best source of information. On socials, it appears that Euler is actively working to establish contact with impacted curators to offer assistance with asset recovery, but they claim they are having difficulty doing so. Unfortunately, for Euler depositors in such markets like yourself, it would probably be best to prepare for a long period of uncertainty over the extent and timing of recovery on those Euler markets, as the underlying processes will probably look similar to what happened post-3AC+FTX with the BlockFi and Voyager blow-ups (some curators on Morpho and Euler were operating on models not dissimilar to what those CeFi orgs were doing through 2022).
In contrast, Gauntlet and the DAO took uncomfortable but responsible proactive steps to mitigate the risk of a full blow-up in the mainnet stablecoin Comets. By absorbing protocol deUSD collateral on the USDT market, Gauntlet is effectively taking on the burden of working through Elixirâs redemptions process on behalf of lenders in this market and the DAO itself, enabling a return to normal operations within one week instead of the indeterminate timeline being experienced by other markets that listed deUSD and sdeUSD.
I had a sdeUSD position on Compound Finance and borrowed USDC. I just realised that my position had been liquidated. After the Elixirâs tweet about the snapshot, I could see that I still had a position on Compound, and that Compoundâs oracle price was the sdeUSD fundamental price.
I followed Elixirâs guidance, to wait for the claim and do nothing. There was no path to unwind the position with sdeUSD unstake being changed from 7 days to 90 days, and Elixir team claimed that they removed all DEX liquidity, and hence liquidation should not have been possible.
It looks like Compound made changes to the oracle, which resulted in my position being liquidated, while according Elixirâs announcement liquidation should not have happened without any liquidity to liquidate, and fundamentally deUSD and sdeUSD have 1:1 claims. As a result, it is now unclear to me whether I still have a claim against Elixir. Elixir team never published an exact time of the snapshot, and refused to answer this question when being asked in their community.
From your post, it seems like my sdeUSD is now sitting in Gauntletâs multisig. Could you please confirm what would happen to non-Stream users that got liquidated on Compound? It is a significant amount of asset to me. Do I then have a claim against Compound or Gauntlet once you are refunded 1:1 by Elixir?
Additionally, Elixir mentioned that the snapshot already happened before they posted the tweet, it seems like Gauntlet actually liquidated the sdeUSD and deUSD after the snapshot. Why do you expect to be eligible for the sdeUSD and deUSD claim at 1:1?
The sdeUSD to deUSD is a fundamental oracle. However, because deUSD to USD depegged, user positions have been liquidated according to the protocolâs automated absorption liquidation mechanism for borrowers who did not repay their debt position (noting also that repayment functionality was still available during a protocol pause). Elixirâs public post mentioned that they will be working with Compound users on repayments regarding lending positions. Regarding claims to deUSD and sdeUSD liquidated loans from Compound, affected users may need to work directly with Elixir.
What Iâm not understanding here is, Gauntlet mentioned the expectation of 1:1 claims from Elixir for the liquidated deUSD and sdeUSD that Gauntlet currently holds in the multisig, which was obtained AFTER the Elixir snapshot.
Users that had a position on Compound at the time of the snapshot should also be eligible for 1:1 claims according to Elixirâs tweet. Obviously not both Gauntlet and Compound users will be able to claim at the same time as it would be double claiming. Elixir is directing users to Compound in their community for this specific scenario. Could you please provide more clarity on what exactly is Gauntlet expecting from Elixir and the latest communication with their team, so that affected users (specifically sdeUSD and deUSD holders in Compound) know what to expect?
Hi Bingo, we have no additional insight regarding Elixirâs treatment of borrowers who used deUSD/sdeUSD as collateral. Note that borrowers and suppliers may be viewed as fundamentally different in their risk exposure. When a liquidation occurs, the liquidated borrower no longer has to repay the stablecoins they borrowed from the protocol.
We would like to update the Compound DAO that the USDT transfer has been executed. The USDC, USDS, and USDT Comets are functioning in accordance with normal operations.
How about your communication with Elixir about the sdeUSD Gauntlet obtained from the liquidation (after the snapshot)?
Elixirâs guidance to lending protocol users was to do nothing, as market liquidation shouldnât be possible without liquidity, and that Elixir needed some time to work on the claim. They also mentioned that the position should not be changed as it might affect the eligibility (asking users to not unstake, move positions etc.). They worked with other lending protocols like Degenbox for the claim and the users there are eligible for the current Phase 2 claim.
However, Gauntlet decided to go against Elixirâs guidance and performed the liquidation, which created a lot of confusions for both users and Compound stakeholder.
For Compound stakeholder: the liquidation, technically, if following Elixirâs snapshot, does not make any financial sense, since any sdeUSD gained after the snapshot is not eligible for the claim. Could you please provide the latest update on this?
For Compound users, we were following Elixirâs guidance, and our position should have been included in the snapshot since Gauntletâs liquidation happened after the snapshot. The liquidation, however, changed our positions, which Elixir warned could affect eligibility (not sure why if they have taken a snapshot). All sdeUSD collateral holders would be motivated to repay the loan since sdeUSD has 1:1 claim, so I am not sure what your last sentence is trying to say. Elixir is wanting users to work with Compound on their positions, just like how Pendle and Degenbox are handling the claims on behalf of their users in the current phase. What are you doing to help Compound users here?
Any update on deUSD/sdeUSD compensation? I provided sdeUSD as collateral, however I have no debt, I was going to withdraw it to convert to other assets but you guys suspended withdrawals, 1 day before Elixir sunset announcement. Then Elixir announced 1:1 compensation for deUSD/sdeUSD holders, and now they are distributing it. What about Compound? Any updates? Thanks
