Impossible Finance 100% Compensation Plan

TLDR: We are making all users whole who were affected by the v2 Swap flash loan attack

TLDR:

  • We are making all users who suffered losses from the v2 Swap flash loan attack whole, according to the compensation calculations as explained below.

  • We will finalize and process all the reimbursable balances by Tuesday, June 29th, 2021 at 11:59 PM UTC.

  • IMPORTANT: We will be deprecating the current IF v2 Swap LP tokens and IF pools — please do not withdraw LP tokens from the v2 incentivized pools (IF/BNB, IF/BUSD), to ensure a full and accurate reimbursement. Users will be fully and solely responsible for their actions on IF v2 Swap.

How we calculated the compensation:

For non-stablecoin liquidity providers (i.e. IF-BNB and IF-BUSD)

  • We have taken a snapshot of our users’ balances of liquidity just before the time of attack at 4:40 AM UTC, June 21st, 2021.

  • Users will be 100% compensated via the following mechanisms:

  • IF LPs (whether staked for rewards or unstaked) will have the respective component tokens airdropped as compensation.

  • The compensation will be at a BNB price of US$330 and IF price of US$2.10. While BNB and IF prices both fell further than these prices after the attack, we will honor these prices to ensure fair compensation to users despite the impermanent loss incurred from liquidity provision.

  • For example, if you had IF-BNB LPs (made up of 157 IF and 1 BNB) staked in the rewards pool and IF-BUSD LPs (made up of 200 IF and 420 BUSD) unstaked in your wallet, you will be airdropped 357 IF, 1 BNB, and 420 BUSD.

  • We are aware of some borderline cases that some users were not aware of the announcements on our social media channels and Medium articles and also that minor calculation deviations may have occurred. Please contact the team and we will review these issues on a case-by-case basis, but we reserve the right to make a final decision and will do our best to help all users.

  • Users who withdrew liquidity after the attack (and either due to technical issues or ignoring our encouragement to refrain from withdrawing liquidity) and received less than 100% of what they claimed will be reimbursed for the difference from what they have already withdrawn out of the Swap.

  • Full distribution of the reimbursement funds will occur prior to Tuesday, June 29th, 2021 at 11:59 PM UTC.

  • We are working on a new round of liquidity incentives and staking rewards when we relaunch our v3 Swap. Please stay tuned for more information.

For stablecoin liquidity providers (i.e. BUSD-USDT)

  • You are still able and encouraged to withdraw liquidity at any time from these pairs. As of date, 99% of our liquidity has been successfully removed from these pairs. No compensation will be made for claims arising from these pools as no losses were incurred.

Lucky draw for our loyal users

Additionally, we do not want to stop at replenishing 100% of the assets provided into the liquidity pools. Users who continue to provide liquidity to our v1 Swap will be entered into a lucky draw to win access to enter our IDIA whitelist campaign. The lucky draw will be based on the snapshots of our users’ liquidity provided at various snapshots. Users who held liquidity in the v2 Swap at the time of the attack will also receive some participation rights into the lucky draw as a thank you for past liquidity provision. Each user’s chance of winning the lucky draw will be proportional to the amount of liquidity maintained within the swap by the user. If users choose to withdraw liquidity from the v1 Swap prior to the date of the lucky draw, they will be disqualified from this lucky draw. More details will be provided over the coming weeks, so stay tuned to our Telegram community for further announcements.

How can you trade again?

A very popular question we currently are asked is how can our community buy and trade the token again. To cater for the high demand we plan to relaunch a frontend for our previous v1 Swap first before relaunching our v3 Swap.

Why launch v1 Swap before v3 Swap?

  • Currently v1 Swap works perfectly fine and has operated for almost 9 months securely on mainnet

  • Our decentralised launchpad is complete already but undergoing additional audits for added reassurance. Stay tuned for previews.

  • We want to initiate the IDIA token IDO as soon as possible as we have exciting projects waiting to launch with us.

  • Currently you will need the IF token to participate in our first launchpad project (IDIA IDO) so we want to enable users to purchase IF fairly in the open market.

Details of each swap versions below

v1 Swap

Benefits:

  • Live on mainnet for 9 months

  • Optimized for non-stable assets such as purchasing IF

  • Currently you will be needing IF for the IDIA IDO sale

  • Currently provides you access to trade reliably

Downsides:

v2 Swap

  • Deprecated. This Swap will no longer be used due to the discovered vulnerability

v3 Swap

  • To address the above 2 downsides of the v1 Swap, with Swap v2’s goal of achieving these, we will continue to pursue further testing, auditing, and security review of our Swap contract code in preparation for a v3 Swap launch. We will launch this at a later date after additional testing is completed.

What are the key product milestones after compensation?

  1. Milestone 1: Compensation (now)

  2. Milestone 2: v1 Swap relaunch (~next week)

  3. Milestone 3: Lucky Draw (over the next month)

  4. Milestone 4: IDIA IDO (Q3)

  5. Milestone 5: v3 Swap launch (Q3-Q4)

We will keep you updated as more details are revealed. Thank you for supporting us along this Impossible journey!