[Gamma] Bi-Weekly Update 5
Overview
Original Proposal and Snapshot
Recap of the Previous Two Weeks
After a promising start to Period 5 with large amounts of trading activity, Gamma suffered an exploit on January 4, 2024 at approximately 3:37:30 UTC. This successful exploit occurred in several Arbitrum stable and LST vaults across several exchanges, leading to a loss of approximately $6M+ in LP funds.
None of these vaults were selected for incentives by the GAMMA STIP program.
The first response was to restrict vault deposits to mitigate the attack vector immediately. Because the attack vector relied on the ability to make deposits into the pool, restricting vault deposits on every public-facing vault was a broad but effective means of nullifying the attack. Going network-by-network, we restricted all deposits at the smart contract level and notified our partner AMMs as soon as such actions were taken.
Gamma then engaged several auditors and developed a compensation plan for the victims of the attack. A few days later, an Interim Report was created to analyze the issues created by the attack. It was decided to reduce ARB emissions on all vaults by 30% while deposits were closed.
This report will be split into three numbers for transparency. A pre-exploit, post-exploit, and combined number.
ARB Received Last Disbursement:
ARB Utilized as Incentives in the Last Two Weeks:
107,143
Contracts incentivized over the last 2 weeks:
Contract address label Form completed for all addresses.
Yes
ARB left over:
93,183.68
Plan for leftover ARB:
Continue to disperse ARB at steady rates in later periods.
Summary of incentives:
Camelot’s pools received approximately 40% of our incentives. Uniswap received about 33.3% of the available incentives, Ramses 16.7%, PancakeSwap 4% and SushiSwap 6%.
The incentives were spread over various pools, including blue chip pairs, Arbitrum-native projects, critical multichain infrastructure, stablecoins, and undercapitalized pools.
Incentives were distributed using Camelot Nitro, GammaChef, Angle Merkl, and Ramses’s MFD.
Additional Info / Disclosures to Multisig:
No disclosures or additional information.
Statistics
Average daily TVL:
$23,357,119 / day on incentivized vaults (Pre-exploit)
$18,574,859 / day on incentivized vaults (Post-exploit)
$21,131,446 / day on incentivized vaults (Period 5 Total)
Average daily transactions:
1594 / day on incentivized vaults (Pre-exploit)
1222 / day on incentivized vaults (Post-exploit)
1421/ day on incentivized vaults (Period 5 Total)
Average daily volumes:
$114,491,472 / day on incentivized vaults (Pre-exploit)
$66,206,858 / day on incentivized vaults (Post-exploit)
$92,019,726 / day on incentivized vaults (Period 5 Total)
Number of unique user addresses:
1131 (Pre-exploit)
1182 (Post-exploit)
1206 (Period 5 Total)
Transaction fees:
$1,256,080 / day on incentivized vaults (Pre-exploit)
$663,105 / day on incentivized vaults (Post-exploit)
$980,108 / day on incentivized vaults (Period 5 Total)
Link to Dashboard showing metrics:
Metrics Tab
Next Period
Amount of ARB to be distributed: [Insert amount of ARB]
75,000 (30% deduction from previous period)
Contracts that will be incentivized:
|## Contract address label Form completed for all addresses:
Yes
Mechanism for distribution incentives:
Incentives will be distributed using Camelot Nitro, GammaChef, Angle Merkl, and MFD.
Summary of incentives plan:
All ARB emissions will be reduced by 30%.
Camelot’s pools received approximately 40% of our incentives. Uniswap received about 33.33% of the available incentives, Ramses 16.67%, SushiSwap 6%, and PancakeSwap 4%.
The incentives will be spread over various pools, including blue chip pairs, Arbitrum-native projects, critical multichain infrastructure, several stablecoins, and several undercapitalized pools.
Summary of changes to the original plan:
Period 6 and possibly Period 7 to be reduced while deposits are closed.