Put this to a vote.
Im 100% against using treasury balances to pay leveraged people back. Unfortunately it’s a risk they took it was never free money if it was everyone would do it. IIts ENABLING the same thing to happen again.
If Danny and Sifu would like to pay out of pocket i have no issue.
0 voters
The third option doesn’t make sense. We can’t obligate them to do anything from their pockets. The second option kinda encapsulates that by not refunding them.
I will leverage at 70% every time we are below backing because there is absolutely no risk. I would also encourage others to do the exact same. If we get liquidated, then we know we will just get a refund from the treasury funds. If we don’t get liquidated, then that means the price of wMEMO is going up and we are finally making money.
I don’t have an issue with using treasury funds, but something should be done for those who got “rekt” by deleveraging. I 100% support frogs helping frogs, but seems like a large population of frogs will be missed here but were hurt by the same event.
Ps, have never leveraged, just want liberty and justice for all.
Its about being promised a backing price. It was like a guarantee and decisions were made on behalf of that. If there was no backing price concept then of course it would be 100% on the person that decide to risk it all!
search sifu he has already suggested that course of action
It would be nice to get an estimate of the impact of the bailout in our treasury. If it is as stated by Sifu, that it should not be a big deal to recover from, I’m totally ok with the bailout since this was a structural failure and is a one time thing, plus we can’t call ourselves a nation if we can’t help each other.
Additionally, on a better time, those who hodl can be rewarded too somehow through an additional incentive.
The only reason the 3rd option is there is because @wsifu said they would find a way out of their pockets if not. The “blame” lay with buy backs not done in a fast enough fashion so if anyone should “bail out” it should be from those in control of the buybacks that allowed these liquidations not the DAO as a whole.
While the intention is noble, it just doesn’t make sense to do this. Leverage is high risk for high returns… this is defi and everyone should do their research + not degen into strategies found on a twitter post…
If one fails, it’s a lesson learned. Just learn to do better next time.
Please read, Liquidation problem, Sifu and Dani's statement and Gaining Trust - #5 by kryptonyte41
In my opinion, If everyone vote for not to pay out the liquidated people, the community will loose it’s credibility. As a person who got liquidated, I can only speak for myself (and I think others are also thinking like this) that, I will get out of this project since the leader of this project cannot keep their promises.
Peace, not here to argue.
They took a risk, not me, I disagree with any form of bailout !!!
I am perfectly fine with you getting out of this project. What happens when you get your bail out? You’re going to over leverage again?
I am perfectly fine with you getting out of this project. What happens when you get your bail out? You’re going to over leverage again?
Didn’t get your point.
Can you clarify more?
Suggestions from Dan and Sifu as price tanks and liquidation cascades seemingly a new norm now - are becoming crazier and crazier.
Many people say - Wonderland is becoming a cult - and with these ridiculous suggestions, I’m starting to agree.
I have no problem with you getting a bailout due to a failed DAO mech. but the rest of us frogs aren’t to foot the bill this isnt FIAT. it should come from Sifus pockets as he said he would do if voted against.
I agree they should not use the treasury funds to pay back people who got liquidated. They took a risk, its not our fault they didn’t understand what leveraging is. Price drops can and will happen, the buy backs are not instant! A flash crash can and will happen in almost any market. This also isn’t the first time this has happened. Why should people who follow the rules have to pay for their mistakes? If they want to pay out of their on pockets they can.
Just because there is a backing price does not mean you have zero risk borrowing below said price. There will always be risk involved with leverage, especially with crypto and especially with projects like wonderland that are extremely new.
Fuck people that leveraged, period. They know the risk they took. There’s people that have been HODLing TIME/MEMO/wMEMO for months and have seen no rewards for it. There’s been people that have been liquidated in past liquidation cascade events, they didn’t get buybacks. All this does is encourage more gambling with wMEMO. This doesn’t reward holders, only those that wanna abuse the system. Much like whales that are trying to abuse the buyback system.
Frogs don’t leverage.
I understand, but I don’t think its up for we to vote on it. It something they should decide.
Sifu clarified in the discord just earlier that treasury funds will not be used to bailout the liquidated. It’s coming from Dani and Sifu’s personal funds.