Author: Stake DAO Association
Summary
SDGP-70 authorized a voluntary, ex gratia distribution of 1,535,421.76 sdCRV to liquidity providers affected by the May 27, 2026 vsdCRV incident. Borrowers on the asdCRV LlamaLend market on Arbitrum were also affected by the same incident, but were not covered by SDGP-70. This proposal extends the distribution to those borrowers, under the same terms, for a total of 17,681 sdCRV funded from treasury reserves. That is about 1.2% of the original distribution.
Context
The attacked pool (CRV/vsdCRV/asdCRV on Arbitrum) feeds the price oracle of the asdCRV LlamaLend market. When the attacker distorted the pool on May 27, the oracle price collapsed for 55 minutes. During that window, some borrowers were liquidated on the basis of a manipulated oracle price that did not reflect prevailing market conditions.
The Association published the full impact assessment, along with the list of eligible addresses. The list has been open for community review since then.
Proposal
Authorize the treasury committee to distribute 17,681 sdCRV from treasury reserves to the eligible borrowers listed in the published sheet, as finally determined by Stake DAO governance.
The same rules as SDGP-70 apply. The Association excludes allocations below 100 sdCRV. It also excludes positions opened during the incident window because those borrowers entered at prices the attacker had already distorted. Positions that stayed healthy lost nothing and receive nothing.
Claim Mechanism
Eligible borrowers claim through the same Merkle distribution mechanism as SDGP-70, on Ethereum mainnet, open for six months. Unclaimed allocations return to the treasury after that window.
By claiming, each recipient acknowledges and agrees that: (i) the distribution is made on a voluntary and ex gratia basis, without any admission of liability, fault or wrongdoing by the Association, Stake DAO, the DAO, its token holders, contributors or service providers, and is accepted in full and final satisfaction and release of any and all claims the recipient may have against any of them arising out of or relating to the vsdCRV incident of 27 May 2026 (the “Incident”); (ii) the connected wallet belongs to the recipient and is the wallet associated with the recipient’s eligible position; (iii) the recipient is not located in, and is not a resident or national of, a sanctioned jurisdiction and is not subject to any applicable sanctions list; and (iv) the recipient is solely responsible for any taxes arising from the distribution.
Claiming is subject to the Stake DAO vsdCRV Compensation Claim Terms, which govern the claim and prevail over this summary.
Proposal Specifications
A 3-day vlSDT holders Community Feedback period, followed by a 7-day voting period, with standard governance quorum and majority.
Voting Options
- FOR: Authorise the treasury committee to proceed with the voluntary, ex gratia distribution to eligible affected borrowers.
- AGAINST: Rework the proposal with another solution.
- ABSTAIN: No preference.
Disclaimers
This proposal does not constitute an offer of securities, a financial product, or a solicitation of any investment, and is not investment, legal, financial or tax advice, in any jurisdiction. All transfers are executed on-chain through transparent and auditable smart contracts. Recipients bear sole responsibility for any taxes arising from the distribution. The Association may withhold, screen, pause or reverse distributions where required for sanctions, legal or regulatory reasons, or to correct errors, and approval of this proposal does not create any obligation to distribute and does not guarantee that a distribution will occur. This is a one-time, discretionary measure and does not create any obligation or precedent to provide compensation in respect of any future incident.