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:
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.
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.
If this were to occur clearly defined structure and transparency would go a long way for community trust.
Well said. In total agreement. And they didn’t learn from the first time there was a liquidation cascade. So they go out and hurt us all again. They’ve already hurt us, now they want us to bail them out also?!
I do not like bailing out liq’d folks. I’ve been (3,3)ing like a conservative degen, since there is too much price risk to take on ANY amount of leverage. There is no safe price, just “less likely to get liq’d” not “zero chance to get liquidated”. That said, I also don’t want a large portion of people leave the frog nation never to return. We all benefit the bigger and stronger the community is.
As mentioned by others, maybe some long term vesting/unlock as compensation.
I am thinking of a vesting/unlock, where every epoch a certain % is unlocked. BUT we take $wMEMO wallet snapshots at epoch 0 and every epoch, and if the wallet sells their $wMEMO that unlock % goes to 0. So they have to hold wMEMO and stay in the frog nation to earn their vesting/unlocks. Once they leave their unlocks go to 0.
This sounds complex, but there is precedence with how Viperswap gives out emissions, and how vePTP boosts Platypus yields. So the smart contract code is mostly formed, just needs to be synthesized
People need to distinguish between “leverage responsibly” and “leverage aggressively”. And then ask yourself the below questions:
Please reconsider and show your empathy toward those liquidated. NOT all of them are greedy and irresponsible investors.
It is not your money. The original idea was to pay back from the treasury with tokens bought back to stabilise the price. Doing that hurts the holders by diluting. There is even a possibility of a dump by those that get free token to recoup some losses.
I feel sad for them but it’s not fair. What about the guys who sold before liquidation? What about the holders who lost a lot of value due to a bunch of gamblers? I would only support a fair solution.
What if the people who got bail out agree to lock the refunded wmemo token for a period of time?
About dilution, there is no further wmemo will be minted, so I am not sure why this will introduce dilution? Can you elaborate?
For those who were able to repay and avoided liquidation, I agreed that it might sound unfair to them and we can propose to compensate them as well. And all the compensation will be in wmemo so it is fair for the 3,3 forks that we are all subject to the current low price of wmemo.
Overall, just want those 9,9 forks who got liquidated to regain their position (in wmemo) as what they had. I can’t speak for all people, but I will not leave a community after being helped like this.
