Recovery Proposal 1 of 3: Allocate funds from the DAO Treasury

Governance
1

The Onyx Protocol suffered an exploit on its oPEPE market due to a bug in the rounding implementation. Thus, a ~$2.1m protocol loss occurred to the lending markets of the protocol. XCN Staking and Uniswap liquidity pools remain unaffected. The DAO is working with security partners to track down the hacker and then report the hacker to law enforcement.

The proposal

The Onyx DAO will utilize, for the first time, the $40 million XCN token facility it has, in part with LDA Capital and others, to sell XCN from the DAO treasury through this facility to compensate the Onyx Protocol directly for the hack to ensure users receive funds that can become available.

Earlier, the Onyx DAO preferred to utilize something other than this 40 million dollar XCN token facility due to how the token sale structure is to access these funds. However, given the circumstances, we will take this opportunity to ensure users are made whole to the best of the DAO’s ability. We will utilize any additional avenue we have to expedite the utilization of this facility.

Onyx Protocol will deploy this proposal to ensure compensation for the affected users.

We apologise for any inconvenience, and we will work with the security experts and the community to ensure better security practices in the future on new market deployment. Moving forward, until better practices are established with the community, all salaries to the developers and DAO will be halted until further notice. We understand that this is a time we need to rebuild trust, and we will work with the community to establish this.

Voting

The on-chain votes will occur on approximately November 6th to ensure sufficient time for users who want to participate to stake their XCN to vote on this. There are currently two propositions:

The community will vote.

3 Likes
2

This proposal seems the most optimal, as it allows XCN to continue to have value to the market, drawing confidence and allowing this new running bull market to allow flourishment of the Onyx Protocol without it being acquired.

2 Likes
3

In my opinion, let’s take full advantage of the $40 million from previous investors (if this money is actually invested) to compensate after the hack and take advantage of the interest of many parties after the hack to strongly market for the project. many newbies, please don’t sell XCN from the DAO treasury to compensate for the hack, because the value of XCN has decreased 234 times from the peak and investors will almost no longer have faith if the value of XCN goes to zero, th The two selling pressure will be strong and there will not be enough liquidity to return $2.1 million. Sorry if I explain but you still don’t understand, please explain in more detail for everyone. Thank you.

4 Likes
4

This proposal is far better than totally selling the project to some other . is 2m a lot to recover ?

1 Like
5

XCN has 4 tabs of markets trading on coinmarketcap. STRIKE has barely a few exchanges trading their token. Releasing the supply will crash XCN and delist from some exchanges but keep its reputation and trust. enable the XCN holders that are unaffected by this hack on the supply to participate on these proposals.

3 Likes
6

there will be nothing left like onyx after the full control of strike

7

there is something fundamentally wrong with this project. There is 100% a bad actor. Either from the chain team, Deepak himself (who is probably alex), or the current devs. Rebrand, rug, rebrand, rug, get hacked, rebrand, looks at the chart its literally a safemoon 2.0.
You’re once again about to destroy your holders because you were negligent. Paid yourself bonuses instead of getting another audit. Certik said it’s centralized, now we know it is. It’s not a defi platform. This is why crypto will fail because projects like this are destroying retail

8

I believe that the best solution would be for XCN to employ the LDA Captial facility to make users whole rather than being acquired by strike. There would be a future for XCN

  1. The Advantages of Using the LDA Capital Facility:
    Tldr: They are a fund that does not wish to sell their investments at a loss (XCN price rise) and are a huge confidence booster.

Despite the fact that XCN is sold to LDA Capital, they are a fund and their purpose is to make money. At the current pricing, they would lose money if they sold their entire interest, thus they have an incentive to ensure the profitability and growth of XCN. In turn ensuring that they would be able to earn a greater profit but also improving onyx for all users at the same time.

Also, because it is an Over-The-Counter (OTC) transaction, selling to LDA Capital would result in no instant price drops or crashes, but rather a simple transfer of funds between the DAO and LDA.

Furthermore, rising Onyx from the ashes with the LDA Capital Facility would be a big confidence booster. Because of this feature, users have a larger belief in the fact that Onyx Protocol has good backing and can use their backing, implying that the upside of Onyx is far superior than that of many other protocols. Wormhole Bridge, for example, was exploited for an outrageous 327 million, after which their partner Jump Capital stepped in and covered the difference. This created massive confidence for wormhole which is now still in operation greater than ever.

Furthermore, the quantity of XCN is not newly produced but rather from the DAO, implying that ownership is transferring rather than an additional minting of XCN.

Of course, more clarity regarding LDA’s function would be beneficial for members, but because the nature of a fund is profitability, we can be certain of the goal of strengthening XCN.

With both the future usage of XCN and the confidence increase, Onyx Protocol has a promising future.

  1. Getting Acquired by Strike is pointless.

Let Onyx Protocol (XCN) NOT be acquired by strike.

If the LDA Capital Facility is available, the strike acquisition makes no sense. This is because the increased confidence in XCN makes it desirable for Onyx to be its own separate entity, allowing it and its users to benefit from the bullrun. If it is acquired, the increased confidence will not be transferable to strike and would thus be wasted.

Furthermore, with Onyx not being acquired, members of Onyx have a lot more upside.

4 Likes
9

Both of these proposals need to be rejected.

You have provided 2 proposals that will effect the whole community. Not just the ones that were involved in the hack.

Option 1: dilute supply by 10% with 3 Billion coins from LDA + their discount of 15% of purchase price

Option 2: Lose 15% instantly via migrate to stripe.
—-option 2 is by far the worst thing that could happen.
—(The buy out price needs to be disclosed to ud investors and what the team gains from it)

Our responsibility of the community is not to prevent a hack. In fact, another audit was suggested when you took over. You said it was not needed because it was too expensive. Furthermore, we hold XCN, not onyx. We own 0% stake in the onyx protocol. It is not the community’s fault onyx got hacked, nor should holders of XCN be responsible of paying back something that could have been prevented.

The only way to fix this is ONYX the app, pays the people that were effected by the hack. XCN has no role in this. Find a way to become a profitable company and pay them back over time. Relying on XCN to pay for EVERYTHING has got to stop.

2 Likes
10

Its is not a dilution of the supply as it is from the DAO that has their funds slowly being unlocked anyway. Furthermore with a substantial backer, Onyx/XCN actually can garner confidence and utility for the future. Creating a belief in the overall protocol. It is easy to say to just create something that makes money, but having a good money maker and ensuring that it properly works well in the future is better - which is the current onyx if saved properly

3 Likes
11

This makes a lot of sense . LDA are great pumpers though :slight_smile:

1 Like
12

Isn’t that the whole point of a business? To turn profit?

Staying a-floating on retail investors money(XCN) shouldn’t be a long term plan. If it’s truly decentralized, the onyx app should be bringing in some income and pay for its own marketing budget/salaries. As well as building a cash reserve for things like this.

If this passes, LDA will now have enough coins to technically run the entire platform via proposals and voting if they so choose…. Maybe that’s a good thing? But it may not be considered fully decentralized at that point.

1 Like
13

It is good to turn a profit. At least at the helm there would be strong lead (LDA) which intends to make and churn as much profits for the protocol which leads to overall benefit. Decentralisation is good but profits are better.

2 Likes
14

It sounds very optimistic for the all community. I hope it will really help to make up for all troubles with users’ assets… :pleading_face:

Anyway it is very cool that project is trying to save its users❤️

1 Like
15

Hi,

Thank you for your opinions.

If you are aware of risks and want to Borrow/Supply, including XCN, use https://testapp.onyx.org. It may be helpful to withdraw XCN and then stake to get voting power.

2 Likes
16

Thank you Alex. You are showing true leadership in this period of uncertanty. This is why i have faith in this community and will stand with XCN going forward.

1 Like
17

Its better proposal than selling the whole company to other . lets go with this one

1 Like
18

I think this proposal will work well

2 Likes
19

yes man . as bull run approaches more people will know about onyx in good marketing practice , so onyx will become profitable , but selling because of one small hack doesnt make sense imo

1 Like
20

what are you talking about good marketing? have you seen the performance since this team took over? Sega left because hes a good guy and fouind out this is a rugpuill