Do not bailout liquidated individuals with treasury funds

1. General Discussion
#64

How exactly are u not loosing anything, why so many of you are spreading misinformation?
Buyback that was promised and reassured last week again, states that at or around 48k buybacks will start, it did not and price dropped to 23k.
So price of wemo dropped 40%, what they are saying is they are not GOING TO PAY PEOPLE BACK these 40% or drop of memo, but rather liqudation amount.

So we both had 10k in memo, and i borrowed 5, so i had 15.
Memo drops 50% = u have 5 left i have 7.5…
I get liquidated for 5k and some fees to pay back the loan, thats the amount they are saying they would PAY BACK from the same POCKET those money went to in the first place.

#65

Sifu himself said the bot setup for buybacks ran out of money.

DANIELE said this was a coordinated attack.

This was not normal market conditions.

1 Like
#66

All of this exactly, how is it the irresponsible ones are to be repayed? Ah yes so they can put more in and do it again.

#67

Not to mention they both made a lot of money during this liquidation. Makes sense to me that they pay back with their own funds since it’s their fuck up that caused the liquidations in the first place!

#68

dude, if you think there’s ALWAYS going to be “normal” market conditions AND a bailout whenever they aren’t “normal” you need to exit investing all together.

Sifu and Daniele are speculating just as much as you are. You think treasury funds can outbuy a panic sell in the open market? how naive are some of you?

1 Like
#69

This topic needs better clarity for the conditions of the refund if it was to occur. Created this topic:

#70

I think sifu should pay out of pocket since he is so concerned. Not to be harsh bt lets look at the facts of the situation . Gaming a system that is in place doesnt mean you can blame others or the system for you gaming the system. The system wasnt designed
to save leveraged individuals . ive suffered a near 90% loss since november upto now with all rebases. why reward the ppl who took on an extemely risky play knowing what could happen in a down market. Only rite answer is ppl who expect to game the system. Ive supported this project for too long and now watch the wolfs snakes and whales get rewarded while frogs are left on the side with not even a sip of water to quench there thirst.

1 Like
#71

Repaying liquidated holders? This is not fair for the people like myself who have held since the beginning, never sidestepped a single time, and kept DCA’ing in and had to restrain myself from using leverage multiple times.

5 Likes
#72

That one is worse than this one. Just focus on using the treasury or not. Let sifu bail you out himself since he is so charitable.

1 Like
#73

LOL vote yes, yes, yes and sort of yes.

#74

I agree with you, we are on this project together
i have never leveraged either

1 Like
#75

I went to dinner; I was at a liquidation price of 40k (about 10k below the “backing per wmemo”). I got back two hours later; I had been liquidated. And I wonder why the bots did not do a buy back; and who managed to cause this cascade. Will the people who did this return again and ruin this project? Will something be added to the project to eliminate this exploit? And how will the investor who were wiped out by “The price fell from 43k to 22k in under one hour. I disagree that they had enough time to pay back that leverage.” be treated fairly or is it just their tough luck?

#76

Came here to say this exactly–though I believe I would be in favor of reimbursing both those who got liquidated and those who deleveraged. Right now, the frogs suffering the worst are those who were (able to) actively manage their investment. Ultimately you’re in one of three categories, from best to worst:

  1. You got liquidated;
  2. You held and didn’t borrow; or
  3. You borrowed but managed to deleverage to avoid liquidation.

In (1), you get reimbursed.
In (2), you only lost dollar value which, to @sifu’s point, we can work to rebuild.
In (3), you lost the vast majority all of your coins and won’t be reimbursed–like liquidation, there’s no real coming back from that.

I’m all for frogs helping frogs, but if you really intend on leveling the playing field, help all the frogs that are drowning, not just those who got liquidated.

4 Likes
#77

This vote is deceptive and is only yes answers to paying leverage game the system individuals. They shouldnt be saved at all. We mite as well say this occured before . This isnt the first time. this is the same wick situation that occured before when sifu said he wont get liquidated. This is literally ABUSE OF THE SYSTEM

#78

Man fuck no. They’ll just go and do it again, cause further cascades south. Let them learn a real life lesson the way everyone else would. This isn’t kindy.

2 Likes
#79

What Is a Black Swan?

  • A black swan is an extremely rare event with severe consequences.
  • It cannot be predicted beforehand, though after the fact, many falsely claim it should have been predictable.
  • Black swan events can cause catastrophic damage to an economy by negatively impacting markets and investments, but even the use of robust modeling cannot prevent a black swan event.

Weird, two happened in b2b weeks. Sifu cannot predict these and nobody else can. He’s speculating just as much as the rest of you. Either you trust the vision long term of this project or you don’t. You can leverage all you want but there’s ALWAYS inherit risk with leverage. If you don’t know that by now, I suggest you do more research.

1 Like
#80

This is not a reasonable vote because you are asking us to vote on an option that is out of the scope of the DAO. No one can vote to make Sifu or Dani do anything.

3 Likes
#81

The vote premise here seems flawed.

  1. The treasury has already spent the money to buyback the wMEMO below backing. Additional funds don’t need to be spent. The “funds” can just be re-distribute from the pre-burned wMEMO being held.

  2. The goal is to make whole the people who believed in participating in the ecosystem which generates fees for the ecosystem and believed in the promises made by Wonderland leadership (ie, executing buybacks to maintain a price floor, which is exactly what failed here). Don’t you want to know that Wonderland has your back? Well, here’s proof that they do, even if you don’t believe that taking a loan with a liquidation price 50% below backing is something worthwhile for you.

  3. As stated by Dani: “No very small liquidation tbh…”. Looks like more of a sell off that the system wasn’t prepared for, rather than a full on liquidation cascade.

#82

It’s a difficult situation. No matter what Sifu & Dani choose to do, some people will be unhappy.

If nobody is repaid, then the credibility of Wonderland will be permanently damaged. People were assured that buybacks would occur around the backing price and this is the second time this system has failed. If no effort is made to remedy this, then Sifu and Dani will never regain the trust of current and prospective frogs.

However, this does also send a message that people can freely leverage at the backing price and the treasury will have always their back - there are no consequences for what is otherwise considered a high risk move.

If reimbursement for liquidation is paid from the treasury funds, this negatively impacts the wMEMO holders who avoid leveraging. People who are more conservative in their strategy will be resentful for bailing out others who are willing to engage in risky behaviour. Wonderland could therefore lose the trust of many of it’s wMEMO holders.

The best solution that I can see is for Sifu and Dani to offer to reimburse those impacted from their own personal funds. That way people who feel that they were unfairly liquidated receive compensation and the non-leveraging wMEMO holders don’t feel as if they (or the wonderland treasury) will have to pay for the mistakes of others.

Whatever is decided, clearly Wonderland needs a concrete policy regarding what happens during this type of event. Of course, hopefully it never happens again.

1 Like
#83

If you or anyone believes “buybacks” somehow save the day, or keep price a certain level in and OPEN market, you are absolutely FOOLISH.
If everyone decided to sell their wMEMO all at once, you think the treasury has enough funds to buy it all AT THE BACKING PRICE?! that’s not how a market works.

1 Like