dNyan-2 exploit reaction vote

As a result of the dNyan-2 exploit, Nyan-2 LP stakers must come to a consensus on how the excess minted dNyan-2 should be handled.

Voting Dates

(11/3/2020)–(11/5/2020)

Situation Overview

1. Address 0x55a31476429841c5896B63De58128cbEaC5c3B92 minted 1200+ dNyan-2 from the dNyan-2 contract.
2. Address 0x55a31476429841c5896B63De58128cbEaC5c3B92 swapped over half that amount of dNyan-2 for ETH and other assets on Uniswap.
3. Address 0x55a31476429841c5896B63De58128cbEaC5c3B92 still holds 585 dNyan-2

Options

1. The excess tokens in the exploiting wallets can be reduced to their state before the faulty withdrawal.
   Pro: It ensures that the exploiting wallets cannot continue to drain the Uniswap pools of ETH.
   Con: This option alone leaves the excess dNyan-2 in the Uniswap pool unaddressed.
2. The excess tokens in the dNyan-2 Uniswap pool can be adjusted to a state before the exploiting wallet began to drain the pool.
   Pro: It returns the ratio of dNyan-2 and ETH to a healthy level.
   Con: Setting the pool to a favorable ratio may cause a very slight reduction of dNyan-2 for existing LP holders.
3. Both of the above options
   Pro: This encompasses the pros of the above 2 options and ensures that no further exploitation can occur at any level.
   Con: Doing both options simultaneously addresses the issue of resetting the Uniswap pool but it would still mean a possible slight reduction for dNyan-2 holders

Additional Actions

1. Thorough logs will be taken of the situation and logged for regulatory purposes. The addresses connected to the exploiting actions will be passed to all relevant regulatory bodies.

Contract changes

In order to accomplish any of the changes listed above, a temporary function will be added with the goal of reducing the balances of the specific addresses. The function will be a low-level addition to the ERC20 contract within the dNyan–2 contract.

Once the update is completed, another contract update will be immediately applied to remove the ‘special function’.

Rehabilitating the dNyan-2 pool

Additional development of auxiliary strategies(arbitrage bots, etc) will be developed as well to ensure that the dNyan-2/ETH pool grow steadily over time until they reach pre-exploit ETH levels.