Important Update for Trove Owners
Consistent with our updates on Discord/Telegram, we have conducted an investigation over the past couple weeks and identified a bug which allowed three users to withdraw assets not deposited in their trove. All funds were recovered except ~$12,000 which the protocol will cover using reserve funds.
As the protocol is already winding down (full post here), the protocol will take precautions to increase the security of remaining user deposits and automatically repay loans on behalf users. On February 4th, 2024, the protocol will send all respective user deposited collaterals to the treasury and sell each respective user’s trove collaterals to USDC. The USDC from this sale will be used to repay remaining outstanding YUSD debt on behalf of each trove owner at a 1:1 ratio. The net USDC proceeds after repayment will be sent to a claims contract that allows users to claim their net balance.
Users can create a support ticket on Discord if they would like to opt out of this automatic loan repayment or have their trove assets sold earlier than February 4th, 2024. In the opt out, users can repay their outstanding debt with USDC, and receive their collateral back in their native forms. If a trove drops below 120% ICR now or before February 4th, 2024 the position will be liquidated earlier. For majority stablecoin troves, the liquidation threshold is 110% ICR.
The protocol will remained paused and YETI redemptions will be unaffected. Stability pool and PSM will be unpaused after February 4th, 2024. Any unclaimed funds within the protocol and claims contracts will be forfeited after February 4th, 2025.
As stated the Yeti protocol has undergone numerous security measures and code reviews including with security firms referenced on the Docs. Nonetheless, DeFi is inherently dangerous and we continue to encourage all users review our Terms of Service: https://app.yeti.finance/#/terms.
