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Zircon Hack Claims Begin
Submit your claim to receive a portion of the recovered funds.
After evaluating and recovering what was recoverable, we’re ready to begin the process of returning the funds to Zircon users.
We have recovered approximately $27,000 from the funds left in the contracts (Pylon & Energy, the anti-IL accumulation pools). Another $25,000 was returned by one of the MEV bots who front-ran the attack on BSC. The total sum, after converting funds to USD stablecoins, is $51,800.
The liability amounts to approximately $415,000. This is larger than what the hacker stole for two reasons:
Most pools were weighted towards Stable assets, which meant that the Pylon was counting a portion of the Float assets in the pools (especially ZRG) as if it was the Stable asset (ETH, MOVR etc.). Due to the hack destroying the value of ZRG, the loss and liability are larger than it may seem at first.
We’ve decided to return whatever was reduced by Omega (basically, impermanent loss). A few notable pools like MOVR/ETH, MOVR/USDC and MOVR/KSM had a large extra liability from previous activity. We feel that this is fair to the users in these pools, who might have been stuck waiting for a recovery that never materialized.
We’ve made recovery homogenous across all tokens and deployments, meaning that each user can claim approximately 12.7% of their loss. For a full rundown of recovered funds and liabilities, we’ve set up this sheet. This includes the snapshotted “prices” for each type of pool token, which will be used to count the recovery rates.
Claims will be accepted for 30 days from now. After that, in the interest of not locking money waiting for users who might have forgotten about the project, the funds remaining will be sent to a multi-sig to assist in the reconstruction of the project.
In this case the debt will not be cancelled, it simply means that the user will need to wait for new recovery events (since another 50k or so is in the hands of MEV bots) or for the full repayment through the relaunched protocol’s revenue. In any case, we expect the vast majority of the funds to be claimed.
The timeline for relaunch is currently estimated to be about 2-3 months, the time it requires to setup new funding and comprehensive audits.
We’ve set up a form to round up funds claims: https://forms.gle/DHFjjj8kQkvWpsfU7
We will need to get in touch with individual LPs so that they can send back 12.7% of their pool tokens for burning. For this reason, the form is collecting contact data. It is also collecting emails to send a copy of the response to the user if desired.
To count your pool tokens, first unstake them from the farms on app.zircon.finance.
Then, view your wallet on Moonscan or Bscscan to see all the tokens. We have set up this sheet to assist you and match addresses with farms and pool token contracts.
Future debt will be represented by your Pylon pool tokens, and denominated in their respective currency (MOVR, ETH etc.). In this form, you can indicate your choice to convert the liability to a USD value snapshot. There won't be similar chances in the future, so evaluate this carefully.