Hey all, I spoke to @stonecoldpat in the DMs about why my previous post was hidden. He explained to me so I am reposting with the requested changes. Please do not hide this one. I have also tried to change my name on the forum so the word SCAM doesn’t appear anywhere. Sorry if that was wrong.
I have removed all opinions in the post and below is only facts
Plutus tell users that plsARB is not pegged because the arbitrum dao gives no yields to the underlying arb, so nobody has a reason to buy it. They are making this proposal so plsARB can have demand as they have forced 9M arb holders to lock forever.
MY OPINION: The Arbitrum DAO should not give them more ARB until they have made due on liabilities to their own users. It is our duty to help the plsARB holders escape this hostage situation as our incentives got used to enable it. We should not do it by giving out ARB yields but by holding plutus responsible for their own problems before we give them more money and yields.
Here is some needed history, backed by facts, without calling plutus a scam. The reader can decide for themselves if the arbitrum dao should consider proposals from this actor.
- The original airdrop enabled them to collect 9M $ARB tokens from regular airdrop participants. These participants have spent the past few months held hostage, and are now forced to accept less than 0.45 ARB for every ARB they deposited. This is how they did it:
- Created a UI to “claim your arb airdrop”. By using the entire flow of this UI, users were not given $ARB tokens after claiming their airdrop, but instead plsARB tokens. The users ARB went into the pls treasury. It wasn’t until later that they added the disclaimer which explained ARB would be forever locked in the plutus treasury, but plsARB would be swappable for arb via an AMM at a market determined rate.
- Then, if this UI wasn’t enough the plutus dao told users that plsARB is better than ARB because it would earn 2 things. 200% APR in PLS emissions and part of the ARB airdrop that the plutus dao itself got. This is tricky because they used the money the arbitrum dao gave them to entice users into giving them their own arb under the promise of getting paid extra arb tokens.
Today plsARB holders get 2% in PLS, not 200%, and they get 0 ARB yields unless we pass this proposal.
Opinion: saying “stake your ARB airdrop” is very different than the truth which would’ve been “forever lock your ARB airdrop and compete with 9M other ARB to exit in a $100k liquidity pool”
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This exciting offer, coupled with the promise of liquidity if users wanted out, allowed them to suck in over 9 million arb tokens. This would be a great offering and not an issue if these users were happy and didn’t feel that they’d been tricked. But the truth is, thousands of small to large $ARB holders are stuck and begging to get out, but cant. Today these 9M arb are forced to accept less than 0.45 ARB per plsARB because the plutus dao is not doing anything to ensure good liquidity, despite having 100% of the 9M arb sitting in a wallet, fully able to provide deep liquidity at 1.
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Here is their attempt to damage control the situation, please read the responses from real users to see evidence that users have been tricked and want out. This is just the comments on twitter. It is a fact, not an opinion. Every single day multiple users come into the plutus discord and ask how to get out, only to be met with the team saying something like “too bad you should have read the docs”. Many end up banned and silenced with their arb trapped in the dao treasury: https://twitter.com/PlutusDAO_io/status/1694726055926571071
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The team promised deep and well incentivized liquidity. Instead they added $100k of liquidity themselves (this is less than 1% of all the plsARB in existence) and incentivized a 0-1 LP pool which ultimately ensures the price is… not 1 ARB per plsARB. Even if users knew they would have to swap out in the AMM, they would assume deep liquidity would mean far far more than 1%.
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No voting: plsARB holders have no rights to use the underlying ARB to vote. plsARB holders cannot vote for themselves to be freed, they cant even lobby for pls holders to free them as plutus advertises itself as a dao but has no voting.
The team just decides how to wield the DAO arb, and uses it how they please (https://twitter.com/PlutusDAO_io/status/1702666102285963596).
Additionally, in the recent STIP grants votes for the arbitrum DAO the team used the ARB underlying the user owned plsARB to vote yes for teams they like. PLS holders had no say, plsARB holders had no say. The plutus team just voted to give their friends more ARB tokens using tokens that belong to ARB airdrop participants. (opinion: this is poor governance for our dao)
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Discord users have made suggestions to repeg plsARB but the team will not accept any solution that involves redemptions. (opinion: many of these solutions are reasonable and would work. They are not short term minded)
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To make matters worse, the team stole a significant amount of the last ARB airdrop from the PLS DAO.
- There was NO dao vote to give the team this supply
- This was over $700,000 USD which they gave to themselves (already completed and sent to their own wallets)
- the entire 9M of plsARB/ARB that they took from users got LESS of the airdrop than the team took for themselves
- Opinion/question: Ask yourself, why is there even a “liquid locker” for $ARB when $ARB cant be locked anywhere? They need to get us to do this because they don’t want to be responsible for the plsARB/ARB peg issues they created, and could easily solve.
Overall the plutus dao used the last airdrop to enrich themselves, trick users, and steal governance power in arbitrum. Tons of ARB airdrop holders are trapped and have no voice or vote to help themselves. Its time we help them or at least ensure we don’t enable more of this.
The plutus dao will likely give poor responses such as:
- “PLS holders can vote to allow plsARB holders to redeem” (answer: pls holders would never do this as they want to keep all the arb underlying governance for themselves. But if even if they wanted to, there is no voting)
- “We always said leaving would be at a market determined rate” (answer: this is a technicality they use to wash their hands of this scheme. Reality is they said you could swap out with deep liquidity but that’s non existent and mispriced.)
- “We paid pls and arb emissions to get this arb, why would we give it back?” (answer: they could easily add a small redemption fee to cover that cost, as highlighted in discord by many)
Plsarb
0x7a5D193fE4ED9098F7EAdC99797087C96b002907
Arb underlying plsarb
0x180Bb71666C4de074b4daA17Ed579aFcB8eB2C25