Compensation Plan and Next Steps
Update on process, details and logistics for remediation of funds
April Update: The Claim Portal has been extended for a final time and will remain open until May 14 at 23:59 UTC. After the Claim Portal closes, unclaimed compensation will be returned to the Raydium Buyback Treasury.
The final extension follows an additional extension from April 3rd until April 17th.
Compensation for Tulip Liquidated Leveraged positions has been distributed. A portion of funds were allocated to the Raydium Claim Portal and a portion of funds were distributed from Tulip’s Protocol Insurance Fund. Tulip’s Insurance Fund was repaid from the Raydium Treasury.
Feb 28, 2023 Update: Compensation for Tulip Leveraged Vaults and DeltaOne products has been transferred directly to the third-party accounts and credited to individual user positions on those platforms. Additionally, the deadline to access the Claim Portal has been extended until April 3, 2023, at 23:59 UTC for all positions outlined in Phase 1 and Phase 2 below.
This article was updated on February 3rd, 2023 to include the Compensation Plan for positions held and maintained on Tulip.
UPDATE: Compensation Plan update and information (as of Feb 3, 2023)
In an effort to keep all information about the claims process in one place, this article has been updated with details on Phase 2 claims. Previous details on Phase 1 and 2 claims, which are already in progress, remain at the bottom of this article.
Phase 2 Overview: Tulip
Phase 2 claims include those for third-party protocols with strategy vaults. For this part of Phase 2, claims will open for non-leveraged positions held and maintained on Tulip’s auto strategy vaults.
Tulip uploaded available snapshot data to Raydium’s Github. The snapshot indicates the proportion of non-leveraged user positions that make up Tulip’s PDA balances. Put simply, the provided snapshot shows individual user (Public Key) balances in each Tulip vault and how much each user is owed in compensation.
Timing: The Claim Portal opens for ‘Phase 2 Tulip’ distributions on February, 3, 12:00 UTC. The Claim Portal will remain open for two months and can be accessed until April 3, 2023. Phase 1 claims for positions held directly on Raydium and Phase 2 claims for Francium positions are already in progress and remain open.
Please Note: Claims are time sensitive according to above dates. Unclaimed assets will be returned to the Raydium Treasury and unclaimed RAY contributed from the team allocation will return to team reserves, when the Claim Portal closes.
Compensation Details
Compensation for this phase is consistent with Phase 1 and the first part of Phase 2. Asset claims for liquidity providers (LPs) during the incident will be in three main categories:
1. For RAY-USDC, RAY-SOL, and RAY-USDT on Tulip, liquidity providers will be able to claim 100% of the original principal lost to each individual position based on a snapshot of LP balances at the time of the exploit.
RAY used to cover original principal exposure is distributed from vested Raydium team token reserves.
2. For SOL-USDC, SOL-USDT, stSOL-USDC, and whETH-USDC on Tulip, individual liquidity positions will be able to claim 90% of the original principal lost to each individual position based on a snapshot of LP balances at the time of the exploit.
3. For SOL-USDC, SOL-USDT, stSOL-USDC, and whETH-USDC on Tulip, individual liquidity positions will also be able to claim the remaining 10% of lost asset value (at the time of the exploit) denominated in RAY. An additional 20% of the remaining lost asset value in RAY will be further added to the compensation. So, for every $1 of the original principal not covered in the native asset, $1.20 worth of RAY, or a ratio of 1:1.2, will be used for compensation.
Additional RAY compensation is distributed from vested Raydium team token reserves.
The value of RAY is derived from a 30-day TWAP from CoinMarketCap for the period between December 6th to January 3rd. The 30-day TWAP price of RAY is $0.1813.
Original articles outlining Phase 1 and Phase 2 (Francium) claims are below.
As always, drop by the Raydium Discord server with any questions or feedback.
This article was updated on January 20th, 2023 to include the Compensation Plan for part of Phase 2 claims, including positions held and maintained on Francium and the opening of claims for ZBC-USDC and UXP-USDC.
UPDATE: Compensation Plan update and information (as of Jan 20, 2023)
In an effort to keep all information about the claims process in a one place, this article has been updated with details on the first part of Phase 2 claims. Details on Phase 1 claims, which are already in progress, remain at the bottom of this article.
Phase 2 Overview
Phase 2 claims include those for third-party protocols with strategy vaults, and the ZBC-USDC and UXP-USDC pools.
For this first part of Phase 2 (Phase 2-A), claims will open for all positions held and maintained on Francium, and positions in the ZBC-USDC and UXP-USDC pools on Raydium.
Francium has uploaded available snapshot data to Raydium’s Github. The snapshot indicates the proportion of user positions that make up Francium’s PDA balances. Put simply, the provided snapshot shows individual user (Public Key) balances in each Francium vault and how much each user is owed in compensation.
ZBC-USDC and UXP-USDC positions held directly on Raydium are also open for claims.
Claims for positions held on third-party protocols other than Francium will open at a later date in Phase 2.
Timing: The Claim Portal opens for Phase 2-A distributions on Jan, 20, 12:30 UTC. The Claim Portal will remain open for two months and can be accessed until March 21, 2023. Phase 1 claims are already in progress and remain open.
Please Note: Claims are time sensitive according to above dates. Unclaimed assets will be returned to the Raydium Treasury and unclaimed RAY contributed from the team allocation will return to team reserves, when the Claim Portal closes.
Compensation Details
Compensation for Phase 2-A is consistent with Phase 1. Asset claims for liquidity providers (LPs) during the incident will be in three main categories:
1. For RAY-USDC, RAY-SOL, and RAY-USDT, liquidity providers will be able to claim 100% of the original principal lost to each individual position based on a snapshot of LP balances at the time of the exploit.
RAY used to cover original principal exposure is distributed from vested Raydium team token reserves.
2. For SOL-USDC, SOL-USDT, stSOL-USDC, ETH-USDC, UXP-USDC and ZBC-USDC individual liquidity positions will be able to claim 90% of the original principal lost to each individual position based on a snapshot of LP balances at the time of the exploit.
Please note: The UXD and Zebec Treasury LP positions represent a substantial amount of the assets in their respective pools, compensation for Treasury positions are being handled on an individual basis.
3. For SOL-USDC, SOL-USDT, stSOL-USDC, ETH-USDC, UXP-USDC and ZBC-USDC individual liquidity positions will also be able to claim the remaining 10% of lost asset value (at the time of the exploit) denominated in RAY. An additional 20% of the remaining lost asset value in RAY will be further added to the compensation. So, for every $1 of the original principal not covered in the native asset, $1.20 worth of RAY, or a ratio of 1:1.2, will be used for compensation.
Additional RAY compensation is distributed from vested Raydium team token reserves.
The value of RAY is derived from a 30-day TWAP from CoinMarketCap for the period between December 6th to January 3rd. The 30-day TWAP price of RAY is $0.1813.
Original article outlining Phase 1 claims is below.
Originally Published on January 4, 2023
First, the past couple of weeks have been challenging to say the least for all users and partners of the Raydium community. However, the support and understanding from everyone during this time has been greatly appreciated as a plan forward was formulated.
Next steps for compensation
Following the initial proposal for the remediation of funds, assets in the treasury have been used to obtain the vast majority of assets that were affected during the exploit.
The next step is to use the obtained assets to restore losses to users that had liquidity positions in affected pools at the time of the incident.
The plan to move forward and compensate users is below.
Process for distribution of assets
A Claim Portal will be available on the Raydium UI where users will be able to view information about liquidity positions that were affected and withdraw assets for compensation accordingly.
Claims will be processed in two phases and split between specific pools. Distributing funds in phases is an added security measure that effectively caps the amount of assets held by the Claim Portal at a given time.
Distributions will happen over two phases
Phase 1 claims are open to users with individual liquidity positions on Raydium. Specifically, this means individual liquidity providers (LP) that have LP-ed or staked in a farm on Raydium directly.
Timing: The Claim Portal is expected to go live for Phase 1 of distributions on Jan 5, 12:00 UTC. The Claim Portal will remain open for two months and can be accessed until March 5, 2023.
Claims for the the following pairs will open for Phase 1:
- SOL-USDC
- RAY-USDC
- RAY-SOL
- RAY-USDT
- SOL-USDT
- stSOL-USDC
- whETH-USDC
Phase 2 will follow Phase 1, however some time is needed to work through additional details:
- Notably, third-party protocols and strategy vaults are not included in Phase 1. A strategy vault, for example an auto-compounding vault, requires users to deposit LP tokens in a PDA, which means Raydium’s snapshots can only attribute LP tokens deposited in strategy vaults to one “owner,” or the third-party protocol’s address.
- Raydium does not plan on differentiating between third party protocols, but asks that protocols affected upload available snapshot data to Raydium’s github and elaborate on how they would distribute funds in the forum.
- Claims for liquidity positions in the ZBC-USDC and UXP-USDC pools will be distributed in Phase 2.
- Raydium intends to open claims for third-party protocol “Owners” in Phase 2. The list of positions on awaiting additional information from third-party platforms is as follows:
Note: This list may not be comprehensive of all positions, if there are any positions missed please submit a pull request here.
Phase 1 Compensation details
Asset claims for liquidity providers (LPs) during the incident will be in three main categories:
1. For RAY-USDC, RAY-SOL, and RAY-USDT, liquidity providers will be able to claim 100% of the original principal lost to each individual position based on a snapshot of LP balances at the time of the exploit.
RAY used to cover original principal exposure is distributed from vested Raydium team token reserves.
2. For SOL-USDC, SOL-USDT, stSOL-USDC, and ETH-USDC, individual liquidity positions will be able to claim 90% of the original principal lost to each individual position based on a snapshot of LP balances at the time of the exploit.
3. For SOL-USDC, SOL-USDT, stSOL-USDC, and ETH-USDC, individual liquidity positions will also be able to claim the remaining 10% of lost asset value (at the time of the exploit) denominated in RAY. An additional 20% of the remaining lost asset value in RAY will be further added to the compensation. So, for every $1 of the original principal not covered in the native asset, $1.20 worth of RAY, or a ratio of 1:1.2, will be used for compensation.
Additional RAY compensation is distributed from vested Raydium team token reserves.
The value of RAY is derived from a 30-day TWAP from CoinMarketCap for the period between December 6th to January 3rd. The 30-day TWAP price of RAY is $0.1813.
Key points
Phase 1 of distribution will be available via a Claim Portal on Raydium, expected to go live January 5, 12:00 UTC for 2 months until March 5th.
Details on Phase 2 of distribution will follow in the coming days. If you are a third-party protocol, please help to provide additional info detailed above
Thanks again to the entire community for support as Raydium continues to strive towards a solution for users.
As always, drop by the Raydium Discord server with any questions or feedback.
