Summary
Understanding the priority and urgency to provide clarity to AMPL users, we propose an interim solution enabling partial but quicker funds withdrawals upon Aave governance approval, while allowing service providers more time to prepare for a final additional distribution.
During the last days since the last update, our efforts and Chaos Labs’ have been on the following directions:
Discover the core root of the problem
As we have not received any update from the Ampleforth team, we have made really significant progress on this, and currently have detected already some logic related with aAMPL total supply (and balance) causing imprecision. This is definitely the cause of the massive and wrong growing of aAMPL supply when it was not supposed to, including at the current moment, where by definition on 100% utilisation the supply simply should not grow.
As there can be different/additional problems, we keep working on this direction, and will unveil the details once we have full confidence on the results. On the side, Chaos Labs is working extracting data to better model consequences of the findings in the code.
Withdrawal of funds
Given that all scenarios are pretty complex, we have a different interim proposal to present to the community. At this stage, we know the following for certain:
- In terms of absolute values, aToken supply is totally virtual, not real, and consequently balances. Answering the question asked frequently on this thread: the ~2’494’000 aAMPL supply that can be seen at the moment on Etherscan, does not represent real claims under any scenario; it is consequence of a problem in the aAMPL logic.
- However, balances of aToken as a proportion of aToken supply are actually representative of the share each user has on the AMPL pool. There could be some deviation even in terms of proportions, but minor.
To be more precise, that means that if the real supply is X, the sum of all the balances should be almost exactly X. - In any model of compensation, we certainly believe the amount will be more than 300’000 USD. It is still difficult to say how much exactly, but that number as lower threshold is safe.
Consequently, we think it is reasonable to propose the following:
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Withdrawals from aAMPL will be completely halted. This is to create a factual “snapshot” of balances, that will not change any proportion over total supply.
This is a pure technical measure, has no effect on any current of future claim.
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In parallel, prepare a Merkle distribution contract with the aforementioned 300’000 in USDC/USDT. This amount will be distributed in terms proportional to the balance of each user, relative to the total supply of aAMPL. That means that if the aAMPL supply would be 300’000 units, a balance of 300 units will give a claim of 300 USDC.
Non-AMPL stablecoins is chosen for the reason we commented before: reduce as much as possible complexity in this initial distribution. -
In parallel, continue with the analysis, to afterwards create at least another distribution for the value not included in the first of 300’000. If the complexity would be reasonable, using WAMPL could be explored, but we are not really confident considering the Aave DAO rails, and would mainly depend on the Ampleforth team/treasury.
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As we don’t have any type of news from the Ampleforth team, we will propose for the Aave DAO to solely cover this initial 300’000 USDC/USDT distribution, as the priority are the users. We expect communication in this forum from Ampleforth if there is any interest on contributing, as technically will be perfectly doable.
The advantage of this approach is that it will be possible for users to withdraw some funds in a very short time period, without any major blocker, once the Aave governance approves. At the same time, will give more time for service providers to continue the work in preparation for a final additional distribution.
We still define the amount in conservative terms, because while it is possible to add more in the second distribution, is not possible to remove once claims have been done. Again, there will be another distribution it the Aave governance approves, this first one is to at least provide some withdrawal liquidity.
As a final note, unless we have explicit confirmation of smart contracts maintainers (e.g. ubAAMPL) that the claim can be executed somehow by its smart contract, those will be left out of this initial distribution. If we get said confirmation, will be included. Please reach us in DM in this forum.