bStable liquidity mining initial market-making loss compensation plan (draft for comments)

Dear community members:

In the liquidity mining of the BSC network last week, due to the lack of an imbalance protection mechanism in bStable, the lack of warnings on the front-end page, and the imbalance in the stablecoin trading pool after excessive QUSD deposit, arbitrageurs took excess QUSD from the trading pool. As a result, the QUSD principal of some users suffered losses. After the event was fermented, it caused a blow to user confidence and QUSD issuance, and had a negative impact on the project.

This accident is partly due to the partial centralization of QIAN's early decision-making and insufficient community discussion. If the energy of community members is fully mobilized to conduct bStable product surveys before bStable is launched, it is believed that the possibility of accidents can be greatly reduced. This also reminds us that in the operation of QIAN, we must rely on and exert the power of the community to bring long-term benefits to QIAN.

According to the discussion among the enthusiastic members of the QIAN community, the current consensus include the following points:

  1. The promoters of the QIAN project (such as David Lei et al.) did not investigate bStable in detail enough, and are lack of the warn of risks before going online. Users were lack of in-depth research on the mechanism of bStable, and they generally charged QUSD singlely for market making. Caused the stablecoins in the pool to be out of balance. Therefore, the QIAN project bears a part of responsibility for this accident and should compensate users for losses;

  2. The compensation method is recommended to be KUN allocation with a certain lock-up time, which can be unlocked and received after certain time, and it is recommended to give this part of the KUN voting rights for compensation during the lock-up period;

  3. bStable should take out part of the income as compensation, which can be done through its token airdrop and other forms. Moreover, bStable bears the main responsibility in this accident. It should take a clear attitude and give the angry users an explanation.

As the initiator of the QIAN community, I personally do not want to see anyone suffer losses in bStable, and the impact of the bStable accident has also affected the circulation of QUSD and the enthusiasm of users to hold KUN. I hope that through reasonable compensation, users can regain their confidence in QIAN, and truly lead QIAN out of this crisis. Therefore, the proposed compensation plan is as follows:

  1. The scope of this compensation is for users who have depoisted QUSD in the bStable liquidity pool and withdrawn QUSD from 21:00 on November 6, 2020 to 23:59 on November 7, 2020, Singapore time, which actually bears the loss. .

  2. Users who suffered losses in this bStable liquidity mining should provide the approximate amount of QUSD loss (accurate to the hundredths), from 21:00 on November 6, 2020 to 23:59 on November 7, 2020, Singapore time. The TxID that shows deposit and withdrawn is used for verification of authenticity, and the wallet address of the BSC network is provided by user to receive KUN token compensation.

  3. The provided materials should be sent to [email protected] by email for verification. The user needs to provide proof of completion of the transaction within one week, and the expiration of the application will be regarded as a waiver of the right to compensation.

  4. The QIAN community development team will calculate the amount of KUN compensation required based on the amount of QUSD lost by each user at a ratio of 20%, with 1 KUN = 1 QUSD.

  5. After the statistics of all users to be compensated, a whitelist of corresponding addresses and KUN numbers will be generated and announced to the community.

  6. The QIAN community development team will develop the KUN compensation lock-up contract. The contract will record the upper limit of KUN that can be minted by each whitelisted address. 30 days after the contract is deployed, users will be able to mint actual KUN compensation for themselves from the specific minting page and extract them.

  7. During the 30-day lock-up period, the user’s address has the governance voting weight corresponding to the number of KUN tokens in the contract, and can freely participate in the community governance voting. After 30 days, users can choose not to withdraw KUN and continue to enjoy the corresponding voting weight. Or after withdrawing KUN, lock KUN into the governance lock-up contract for governance mining.

  8. It should be noted that if QIAN launches governance mining during the 30-day lock-up period, this part of the locked tokens will not be able to participate. Users need to manually withdraw KUN after expiration and lock in the governance mining contract to obtain governance mining reward income.

Since QIAN and bStable are two independent projects, the QIAN community leaders has limited influence on bStable. Therefore, this compensation plan only discusses compensation related to KUN and does not involve bStable compensation measures. Regarding bStable compensation measures, the community members should pay attention and communicate with the bStable team more, they should be able to get results that satisfy both parties.

The above compensation plan for the bStable liquidity mining accident is submitted to the community for discussion. After 24 hours, David will draw up a QIP based on the results of the discussion and start a formal vote. The vote will be conducted in the BSC voting space of Snapshot. After the vote is passed, David will entrust the community development team to execute it, and all members of the QIAN community will jointly supervise the discussion, formulation, voting and implementation of this voting plan.

David Lei

QIAN community initiator