Due to the March 25, 2021 cyber incident, the LID protocol team will cease operations. This plan outlines the Cessation Plan for both LID and LIFT operations. While the smart contracts for both LID and LIFT will continue to operate, with the loss of funding LID can no longer afford to execute future developments of the platforms.
Liquidations, Buybacks, & Burns. Over the next 2 weeks, LID will liquidate all assets and repurpose them towards buybacks of LID and LIFT tokens. There are primarily two assets: (1) small amounts of ETH and ERC20 tokens held by the LID treasury and (2) Freed ETH from burning LID & LIFT tokens controlled by LID or by contracts the LID protocol team has admin keys for.
For LID tokens, there are 17.3m tokens available to burn from the team tokens, staking fund, and dao fund. This will free additional ETH which will be used to purchase LID which will also be burned. Purchases will be conducted slowly over two weeks to allow time for current LID holders & stakers time to exit. The actual amount in ETH for buybacks will depend on market conditions.
For LIFT tokens, there are 724 LIFT available to burn. Including previously burnt LIFT, the total of 880 LIFT will be used to calculate the amount of freed ETH from the pool. Purchases and burns will be conducted in a similar manner as for LID tokens.
Dapps: LIFTOFF.eth & stake.lid.eth Both the LIFTOFF.eth & stake.lid.eth dapps will continue to operate after the LID Protocol team cessation with some minor modifications.
The stake.lid.eth dapp will be updated so that the 0.1% dao fund from transfer tax will be burned. The admin & owner keys for the dapp will be burned.
LIFTOFF.eth will be altered to a 0 fee platform with some adjustments to its tokenomics. The creation of LID/xxx liquidity pools will be automated with a simple contract that allows anyone to trade LID/xxx LP tokens for deposited xxx+xETH plus a 3% fee. Afterwards admin & owner keys will be burned.
Plan Funding 2 ETH from LIFT assets and 5 ETH from LID assets will be used to pay for gas and labor related to the LID Cessation Plan.
Report for the March 25 Incident:
MAR 25 2021 INCIDENT
One of Lid Protocol’s devs private keys was compromised. 216.58 eth of assets were stolen and sold on Uniswap. LID exhausted its treasury to recover as high a portion of assets as possible through purchases on the platform, although losses to bots prevented full recovery of all assets.
15,400,000 BPP / 103.34 ETH
81000 APOOL / 12.21 ETH
TOTAL INCIDENT ASSETS STOLEN
15,400,000 BPP (103.34 ETH)
8,640 PRDZ (98.09 ETH)
116,100 APOOL (15.15 ETH)
TOTAL VALUE: 216.58 ETH (350,974.38 USD)
COMPROMISED ACCOUNT: https://etherscan.io/address/0x35aa8b7cc897d6fc270ad71af6581fcc4da6ae8f
PARTIAL RECOVERY OF ASSETS COURTESY OF LID TREASURY
8240 PRDZ (95% recovery)
107100 APOOL (92% recovery)
15,400,000 BPP (100% recovery)