This post has been updated to reflect the latest information and constructive feedback from the community and key stakeholders
As many of you are aware, recent unforeseen events led to a market selloff that negatively impacted oneDODO holders. These events were related to certain users taking highly overleveraged positions in the Rari pool. We are doing everything we can to examine and learn from these events, and are doing everything we can to inform and support the DODO community at this time.
A detailed list of the relevant transactions is included below.
On 2022-02-02, 1 million USDC was moved from the treasury by ICHI team and deposited into Rari pool 136:
On 2022-02-04, 2 million USDC was moved from the treasury by ICHI team and deposited into Rari pool 136:
On 2022-03-31, 4 million USDC was used to mint 4 million oneBTC by ICHI team, and then deposited into Rari pool 136:
On 2022-04-11, a large selloff of ICHI tokens triggered a cascade of liquidations on the RARI pool 136, due to the high collateral ratio of ICHI token (85%), resulting in bad debt of estimated $64 million in the pool, including $7 million worth of USDC and oneBTC from the oneDODO treasury.
Shortly after the liquidation events, oneDODO users realized that the collateral positions in the treasury were not recoverable, thus a bank run of redemption began; a few hours later, all the remaining USDC in the treasury was depleted. The remaining 8 million oneDODO tokens became irredeemable.
When users discovered that they could not redeem the oneDODO from the ICHI pool, they began to sell off oneDODO through the oneDODO-USDC pair on DODO on both Ethereum and BNB chain, effectively depegging oneDODO.
DODO is actively monitoring the situation and pushing the ICHI team for a constructive solution to meaningfully compensate the loss of oneDODO holders and LPs. Whilst a lot of what has happened is out of our control we will ensure that where we can influence or help users who have been affected we will do our best to do so.
Thank you for your patience in this matter. Please ensure you follow ICHI on Twitter as well as their Medium to keep up with the latest developments.
For updates on the current ICHI Proposals and plans for those affected by Rari pool 136 please follow the Discord Conversation here: ICHI (ichi.org)
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