People that leverage, including Dani and Sifu, already affected who doesn’t leverage twice in few weeks. If anything who doesn’t leverage should get something.
Definetely don’t repay with our funds.
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that is exactly the point.
I never heard of free lunch in financial markets but so many are dreaming of the 45 “promised” lambos in 365 days…redicolous.
Frogs should not be apes 
If leveraged people are repayed, I also want an compensation for the general price drop during the last weeks, in particular during the last days
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Let’s look at the arguments.
- If we oppose the support of the liquidated, then we oppose the maintenance of wMEMO price by the treasury. Because one is related to the other. If we promise to buy wMEMO at the price of support, then we give a guarantee to people, and they have every right to use this guarantee.
- if we vote for support, then we agree with the guarantees, and we give the frogs what we promised. It shouldn’t be controversial, it was meant to be.
- Leverage instrument is a popular financial instrument, we cannot refuse it just because bad (temporary) times have happened.
- You forget about the main mission that unites us. Unconditional support for everyone in the community. Money is only a means to achieve independence, but it should not be a subject of dispute. The strength and cohesion of our community should be higher than this.
- Think about how quickly word will spread that our DAO has reimbursed all the liquidated frogs. You all wanted marketing. Here it is. Stop seeing it as a loss, see it as an opportunity.
P.S. Initially, I was also against it, because I thought “they themselves took this risk”, but after seeing the whole picture, I changed my mind. I hope I can also influence someone.
I am sure that the benefits for our community will be much higher than the money spent.
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Sorry am I in the wrong place cause last time I checked this is supposed to be defi if you can’t even borrow 10% what’s the point
Nope, as explained multiple times by Sifu buybacks do not harm anyone, do not decrease the treasury because the WMEMO acquired is burned.
While buyback and airdrop to some people is dilutive and will affect treasury and price
I JUST CHANGED MY MIND BECAUSE I HAD AN IDEA.
The argument against payback is that it will be dilutive, and unfair to the people who actually took the time and effort to not get liquidated.
But, what if we could bailout the people with tokens locked for a year.
That way, they won’t be able to sell so it wouldn’t really matter to us if the wMemo is with the treasury or the people.
And frankly a year from now, this will only have resulted in trust for the project instead of dilution.
PLEASE READ MY SUGGESTION AND LIKE IF YOU AGREE.
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What is their to compensate if you didn’t sell you didn’t lose anything when the price goes back you will have your money with liquidations the money is completely gone you don’t make sense
the price go back and those wo receive funds will sell immediately or leverage again…so we get price pressure or the situation will happen again and again.
Sends completely wrong signals.
If the leverage morons will get repaied, these tokens should be frozen for at least 6 months and cannot be used for leveraging again !!!
Alright boys, Sifu just posted in discord that treasury funds WILL NOT be used for refunding liquidations. Dani and Sifu will instead use their personal assets.
Backed up by this tweet from dani https://twitter.com/danielesesta/status/1486245042322870274?s=20
So, since I was responsible and paid back my Abra loan about $20 before liquidation I am now penalized instead of just getting liquidated and being reimbursed? Would have been nice to know to save 2/3 of my remaining position and not be down 90% overall since I bought in November.
Also, this is not a ‘black swan’ event. This same scenario has played out 3 times now…
I’ve been using wmemo as a collateral to buy more wmemo. Am I wrong to do this because I believe in the system? I’ve seen many people who did this too. On top of that Sifu said that the backing price will be 40k but didn’t happen. I got liquidated because I took Sifu’s words too literally and shouldn’t it be fair to ask for some justifications to this?
The problem remains the same as I mentioned before:
the price go back because of buybacks and those wo receive funds will sell immediately or leverage again…so we get price pressure or the situation will happen again and again.
Sends completely wrong signals.
If the leverage morons will get repaied, these tokens should be frozen for at least 6 months and cannot be used for leveraging again !!!
From what i know they dont plan to use treasury funds, and they are fixing the mistake they missed, its their call to do this and i think its for the best since it will show good faith and we wont lose many people in our project that would never come back otherwise.
So this vote is pointless. Just remove it and stop causing FUD.
Sifu clearly said it is a one time thing. This doesn’t impact you. Those who got liquidated are still down on the price same as you are. It’s not like they’re getting their initial investment back.
Lack of sympathy for newbies does not build a strong community. I suggest bailout for frogs caped to 1 MEMO, no strings attached. Investors losing > 1 MEMO in liquidations are indeed speculators exploring the commitment of Wonderland to buyback at RFV.
If an error happens on the code and wipes part of your hodlings, please don’t ask dani or sifu for a refund, don’t even blame them, you took the risk the same way those who leveraged on the promise of a backed price.
Why is Daniele paying back those hit in this latest cascade?
Ask yourself.
Daniele wants to keep the community together. End of the day this was an attack on frogs.
When Daniele says I want to make those attacked whole because they were supporting.
Frogs say to Daniele. No. We don’t support you.
Just make us more money.
Sad.
I am a proponent of helping those forced into liquidation as long as the parameters/terms of restitution are clearly defined, so there can be no frivolous claims now or in the future. In my opinion, helping liquidated frogs is one way to ensure that a rock-solid community is created/maintained—which should be long-term net beneficial for all.
With that said, terms need to be set around the following to mitigate moral hazard, frivolous claims, and undue unfavorable economics for the community at large:
- Eligibility: Must be clearly defined and limited to only those forced into liquidation over the last several weeks. Those who sold voluntarily are not eligible.
-
Restitution amounts: Repayment should be limited to treasury buybacks specifically tied to liquidation sales (i.e., buybacks within the period(s) from the 1st liquation to the last liquidation)–this is most likely several tranches (liq. event 1, liq. event 2, etc.)
a. If this means those liquidated are made whole, then great, but more than likely, this means liquidated frogs will only receive a fraction of their initial account value. Unfortunately, setting restitution at 100% introduces highly unfavorable economics for others the community. - Vesting: Restitution should be distributed (vested) over several months to prevent immediate sales of liquidated assets. This is a one-time “favor”, not a way to profit at the expense of others.
- Community approval: a supermajority (66% of votes cast) needs to vote in favor of restitution. Otherwise, there is a risk of alienating one segment of the community for another.
- Finally, this is a one-time action. Future liquidations are not approved. (Leveraging a highly speculative/volatile asset is extremely risky (understatement) and, as such, should be discouraged through the possibility of losing everything.)
On a side note: Abracadabra leverage should be better moderated given market conditions. Leverage ratios should be severely curtailed in down markets when general market volatility is elevated (like now). In up/low vol markets, leverage ratios can be returned to baseline. There are mathematical models for determining the likelihood that a price level will be hit given current volatility.
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No promises were made. The backing price is treasury assets. Crypto assets. Price not stable. Come on people… we should not have to pay for gamblers or greed.
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