Thanks for this post. I found you on twitter and made it to your writing here. I unfortunately was the fool that was a part of the $3.5M in mKO. I am completely new to defi and gave it a go on what I thought was a very risk mitigated trade as described here: https://www.youtube.com/watch?v=azpE7tkcUyc
I thought the only thing I had to monitor was the price of mKO so that I would not be margin called. Little did I know that the community can change the rules right from under you. I can't help but feel like a victim despite knowing all of the usual disclaimers: highly risky, smart contract risk, UST peg risk...I guess I'll add governance risk to the list.
FWIW, I put our home refi money into this trade to get a quick gain before we needed the money. I was taking a short cut to improve our life. Now we are left with $0. Besides kicking myself and trying to explain this to my wife, do you know of any possible recourse? I know that someone previously proposed the community for reimbursement of another like event (https://mirrorprotocol.app/#/gov/poll/228) but to no avail. Do you think it's worth proposing? Do you think there are any sympathetic people in the Luna ecosystem that are worth reaching out to?
Anyhow, appreciate your writing and thoughtful tweets. I wish I was following you a week ago :)
It was also published as a video to YouTube if that is your preferred format. YouTube Link is in the article.
I'm sorry that you lost money to this. You definitely should include governance risk as something to consider in your risk management. Many newer 'exploits' are taking advantage of weaknesses in governance design for DAOs and protocols.
There was some discussion in the Mirror discord about a proposal to make whole the people that were liquidated, but i have not seen any actual proposal posted to the forum or to governance.
Compensation proposal could be a smart contract with a pre-loaded claim list, then a gov poll to fund the smart contract and everyone that got wiped out can recapture their liquidation fees from the compensation proposal. Any community member with the knowledge to create the smart contact could drive this forward. Without a smart contact to escrow the reimbursement funds it would definitely fail.
Whether it would actually be approved by governance is a separate question, but it would probably at least reach quorum and recover the MIR bond for proposing.
Thanks! I'll definitely check out your post on that. I clearly could use another primer. Great context to have about taking advantage of governance design. Something I just never considered as a risk in this trade but should have.
I would love to submit such a proposal but I am not dialed into the community to know how to even begin to get something like that started. But if you have anyone to point me to that could use my situation as an example in the proposal, I'd be grateful for the introduction.
Thanks for helping me understand this better. Keep the good info coming!
Since the proposal will need approved by the same dispassionate whales that pushed through the change, i think it needs pitched in terms of restoring confidence rather than with individual examples of loss. If you're interested in driving the proposal you can hit me on discord @josephsavage#1439 and I can see whether any of my technical contacts can assist with the analysis and smart contracts.
Thanks for this post. I found you on twitter and made it to your writing here. I unfortunately was the fool that was a part of the $3.5M in mKO. I am completely new to defi and gave it a go on what I thought was a very risk mitigated trade as described here: https://www.youtube.com/watch?v=azpE7tkcUyc
I thought the only thing I had to monitor was the price of mKO so that I would not be margin called. Little did I know that the community can change the rules right from under you. I can't help but feel like a victim despite knowing all of the usual disclaimers: highly risky, smart contract risk, UST peg risk...I guess I'll add governance risk to the list.
FWIW, I put our home refi money into this trade to get a quick gain before we needed the money. I was taking a short cut to improve our life. Now we are left with $0. Besides kicking myself and trying to explain this to my wife, do you know of any possible recourse? I know that someone previously proposed the community for reimbursement of another like event (https://mirrorprotocol.app/#/gov/poll/228) but to no avail. Do you think it's worth proposing? Do you think there are any sympathetic people in the Luna ecosystem that are worth reaching out to?
Anyhow, appreciate your writing and thoughtful tweets. I wish I was following you a week ago :)
Thanks for the comment! If you are new to DeFi, then my risk management article may be a good resource for you. https://www.savagecorner.io/p/managing-risk
It was also published as a video to YouTube if that is your preferred format. YouTube Link is in the article.
I'm sorry that you lost money to this. You definitely should include governance risk as something to consider in your risk management. Many newer 'exploits' are taking advantage of weaknesses in governance design for DAOs and protocols.
There was some discussion in the Mirror discord about a proposal to make whole the people that were liquidated, but i have not seen any actual proposal posted to the forum or to governance.
Compensation proposal could be a smart contract with a pre-loaded claim list, then a gov poll to fund the smart contract and everyone that got wiped out can recapture their liquidation fees from the compensation proposal. Any community member with the knowledge to create the smart contact could drive this forward. Without a smart contact to escrow the reimbursement funds it would definitely fail.
Whether it would actually be approved by governance is a separate question, but it would probably at least reach quorum and recover the MIR bond for proposing.
Thanks! I'll definitely check out your post on that. I clearly could use another primer. Great context to have about taking advantage of governance design. Something I just never considered as a risk in this trade but should have.
I would love to submit such a proposal but I am not dialed into the community to know how to even begin to get something like that started. But if you have anyone to point me to that could use my situation as an example in the proposal, I'd be grateful for the introduction.
Thanks for helping me understand this better. Keep the good info coming!
Since the proposal will need approved by the same dispassionate whales that pushed through the change, i think it needs pitched in terms of restoring confidence rather than with individual examples of loss. If you're interested in driving the proposal you can hit me on discord @josephsavage#1439 and I can see whether any of my technical contacts can assist with the analysis and smart contracts.