FilDA Post-Exploit Remediation Plan
Details of the FilDA team efforts to return lost funds to users affected by the hack: IOU bonds, 10% fixed APR on stablecoin assets, full reparations for all losses.
As already stated, the FilDA team is dismayed by the actions of those who sought to disrupt the DeFi efforts of the FilDA protocol on Elastos Smart Chain. Furthermore we fully accept responsibility to correct the engineering that permitted the breach, and we are facing the challenge of ensuring that each affected user has their loss returned to them in full. Finally, this solution has to be managed in a way that permits FilDA to continue.
In reality, for the affected users to be “made whole” again, it is imperative that the protocol keeps growing and providing lending and borrowing services to the Elastos community, and those joining the Elastos DeFi journey.
FilDA has designed the following plan to provide ESC-FilDA with liquidity to function for Elastos again, funds for the affected users to be recompensed, and a way to reward those choosing to assist in the reparations.
FilDA IOU Bond Plan
Visit the IOU Bond page here
- Funds raised from IOU bond sales are for compensation and liquidity in FilDA-ESC. The IOU reward is fixed at 10% APR. A reward and repayment of principal will be airdropped to your address each month.
- Anyone can buy IOU bonds. If you suffered a loss in the exploit, you can voluntarily convert some or all of your loss into IOU bonds.
- If all the $1.68m IOU bonds are sold, all affected users will get back all their lost money (in USD, equivalent value to their loss) when FilDA-ESC re-launches. If all the IOU bonds are not sold, the remaining amount of the exploit loss ($1.68m-bond raised funds) will automatically be sent to affected users in IOU tokens proportional to their loss.
- Anyone holding IOU bonds will receive a monthly airdrop of stablecoins as an IOU reward and repayment of principal. The reward is fixed at 10% APR. The IOU bond is expected to be fully repaid in 3 years with the principal and interest funding coming from FilDA protocol income.
Buying IOU bonds
If you want to buy an IOU bond:
- Visit www.filda.io/bond
- Connect your wallet
- Input the IOU amount you want to buy with USDC/BUSD/HUSD.
- Approve and confirm transaction.
- Once your purchase is completed, the IOU bond will be sent to your wallet.
All airdrops of the 10% APR earnings and principal will be sent to the address that holds the IOU bond.
Do not send these IOU bonds to anyone you don’t know.
IOU bonds available: 1,680,000
Convert loss into IOU
If you want to convert affected funds into an IOU bonds:
- Input your wallet address to check your loss in the exploit. The loss is calculated from blocks before and after the hack.
- If you want to convert, please contact the admin in our English or Chinese Telegram groups. This is a conversion not a purchase. DO NOT transfer any funds to anyone.
IOU subscription rules:
The IOU subscription is divided into two phases.
Phase One is open to any community members or investors who are long-term supporters of the FilDA community. USDC, BUSD and HUSD can be used to purchase IOU bonds. Affected users can convert their loss (in USD) into the corresponding IOU bond.
If all IOUs are sold during Phase One, there won’t be a Phase Two. Raised funds will be used for compensation and liquidity - FilDA-ESC can make affected users whole again.
Examples might help us illustrate this:
- Jan spends $3000 USDC on 3000 IOU bonds. Jan will receive monthly airdrop in stable coins as a reward and repayment of principal.
- In the exploit, Bob lost $2000 BUSD. Bob decides to convert $800 of his loss into 800 IOU bonds. If all $1.68m is raised, Bob could get back $1200 BUSD as soon as FilDA-ESC re-launches and receive monthly airdrop in stable coins as a reward and repayment of principal for the $800 IOU bonds in his wallet.
When Phase One is finished, Phase Two covers any remaining amounts ($1.68m in Phase One — IOU bond sales).
The remaining IOU bonds will be sent to affected users proportional to their loss.
IOU bond details:
- The total amount of IOU bonds available is 1.68 million, and the face value of one IOU bond is $1 USD.
- A fixed 10% APR is the reward for IOU holders through monthly airdrops. Meanwhile, IOU holders will receive monthly airdrops of USD as repayment of principal. It is expected that all debts will be repaid within three years.
- The sources of funds for compensation and repayment include FilDA platform income and any recovered assets from the hacker.
- The IOU bond can be transferred or traded, and the corresponding rights and interests will also be transferred.
In closing, we will do all we can to bring the community trust back again. It is the most unfortunate of circumstances that led us here, but we are not giving up; we will endure and look after our supporters.
We are still looking to improve and enhance FilDA for everyone. Once this remediation plan is underway, and FilDA is running smoothly once more, we will bring our new and improved tokenomics and governance system to Elastos Smart Chain first.
To the future, to FilDA, to Elastos.
The FilDA Team