AMPL problem on Aave v2 Ethereum

Hello @AMPL .

Same as on our last update, we have notified once again the Ampleforth team to proceed with some communications on this forum, insisting on the seriousness of the matter. Unfortunately, it is up to them on the timing on when this happens.
As we commented before, we have not implemented the aAMPL custom aToken smart contract, the Ampleforth team did, so it is out of our expertise to locate the root of the problem. And so our expectations on them leading this effort.

However, we can understand the frustration on your side, so will try to give an overview of our understanding in what is happening, following your points:

  1. Specific challenges. The initial challenge is understanding how much growth of aAMPL is “virtual” (not real), in order to determine how much AMPL underlying should be supplied for withdrawals. This is not completely trivial, and depends completely on doing an historical analysis, combined with total understanding of the aAMPL custom implementation. This is supposed to be done by the Ampleforth team, and again, we have requested them to provide an update to this community asap.
    Once that is clear, there will probably be an extra step to “settle” aAMPL accounting, requiring an upgrade of the Aave pool and/or aAMPL. We could help on this, giving that belongs to the Aave protocol side, outside of the aAMPL custom implementation.
  2. Progress made. From the risk providers side of the DAO, this proposal will be submitted soon to update the interest rate of AMPL, factually disabling the “virtual” growth, as it doesn’t make sense to keep it.
    Regarding extra progress, it boils down to point 1) and the Ampleforth team.
  3. Action plan (changing order of items). An reasonable strategy in this case is the following:
    1. Understand which is a reasonable current claimable rights of aAMPL, discounting the “virtual” (non-real).
    2. Once claimable rights are clear, prepare a proposal to deposit that liquidity to allow withdrawals, to be decided by the community, but for example by using AMPL previously claimed by the Aave Collector combined with extra AMPL from the Ampleforth ecosystem.
    3. Potentially in parallel with 2), settle the accounting of aAMPL, for it to reflect the claims.
  4. Estimated timelines. Timelines are still uncertain until there is an update from the Ampleforth team, but again, we have highlighted with them the importance and seriousness of the matter.
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