Upcoming AMA on the Onyx Protocol hack reimbursement options

Updates
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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.

There are currently two propositions to reimburse the lost:

To make voting transparent, it will be on-chain via Onyx Protocol Governance.

Remember to stake your XCN to gain voting power. Because of the hack, we turned off the Borrow and Supply features in the Onyx app. 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.

I will hold an AMA to address the community questions regarding the current two propositions for the Onyx Protocol. To submit your question, post it on this community forum thread. I’ll hold the AMA before Onyx launches the proposals.

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Both of your proposals are disrespectful to the customers who have long bought and held XCN. If you say the project is decided by the community, then let the community come up with a solution. The first proposal destroys the value of socialism, and the second proposal is truly a miserable proposal when trying to find a way to escape.

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@alex Take a look at (Profile - Tristanman - Onyx Community)'s suggestion.

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can it be live ? voice ama rather than text ama

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Just to reiterate here:
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.

  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. There would be a future for XCN

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.

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too well explained @Tristanman :sunglasses:

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Why did Strike make an offer to acquire XCN just days after the exploit before the dust had even settled, and why are you @alex ok with it? First Sega leaves. (maybe he didn’t like the direction things were going?) We are assured by you that you will take us to new heights after his exit. We have this exploit and it seems as if now you are willing to accept defeat. This tells me that the decisions and proposals are not up to you. This is more about someone else looking out for their best interest. We are left to speculate and it makes us start thinking something shady is going on when that may not be the case. The sequence of events in the last few weeks seems sketchy. Obviously the person who did this knew ahead of time that Pepe would be added and prepared for the exploit ahead of the acceptance. From what I am reading from a Google search reference the exploit, the way it was done it is almost untraceable. Onyx Protocol prides itself as the cryptographically secure ledger. This is a time to come back with a strong move to show the crypto world that this 2 mill exploit will not take down the Onyx Protocol only make it stronger. Instead the public will see Onyx was taken down by trying to add a meme coin. Disgraceful. If a strong :basketball: lls to to wall proposal is not put forward, it’s a wrap for Onyx.

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I dont think its wrap up for Onyx , Just a hard time . hope we all get out of this phase soon

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why do we need to submit question before hand? are you not confident in being able to answer live?

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It would be good during the AMA to direct Onyx’s user base towards the optimal outcome, which in this case seems to be the LDA Capital Facility. Hopefully during the AMA you would be able to lead to the best outcome for all users. Thank you

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https://x.com/al_onyxprotocol/status/1721434641943368013?s=20

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What stops Strike from buying a lot of coins and single handedly passing the vote themself? This is 100% a possibility.

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Are you sure LDA won’t sell the tokens? Timelock it?
Whats the connection between LDA and onyx anyway?

Strike seems to be a solid project. Both options will cover user deposits? Then the question will be, which will be the best for the token price?

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  1. Strike is a protocol, they would need a vote and other things to use funds to purchase. Also I do not see much upside on why they would buy coins and pass the vote themselves.

  2. LDA Capital Facility is a better option, as strike restricts the possible upside that XCN may have.

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I think it’s normal to gather questions before the AMA.

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Wanna know is the first proposal is about directly selling tokens to the market, or conducting an over-the-counter trade with others?

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Lol that will pump the market like hell

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Most likely an OTC between DAO and LDA, but more clarity will be good

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Great Ama lots of questions answered by Alex

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when is voting on proposal gonna start ?