We’ve been working around the clock to map out the cleanest ways to make affected users whole. After a complete review, we are launching a structured recovery plan that relies on recovery tokens (Recovery Tokens, “RT”). The information below explains what RTs are and the different ways RTs can be redeemed for USDC over time.
Most losses were concentrated in a few large wallets: over 90% of losses came from just 5 wallets. These users, like many others, understand the best path forward for all parties is to make Arcadia successful and profitable again.
We reached an agreement that protects small users, positively affects the AAA token, and aligns incentives across the protocol. The largest affected wallets will become long-term partners and hold locked liquidity in an AAA/WETH pool, increasing token liquidity and earning fees that accelerate our recovery. No AAA is sold for the creation of this liquidity. The result is a significant reduction in the total amount of outstanding RTs, resulting in faster redemption for smaller users.
In this way we align all stakeholders and accelerate Arcadia's growth and recovery. In addition, we’ve designed the recovery plan to benefit active users of the protocol: the more you use Arcadia, the faster you will be reimbursed.
The RTs will be airdropped within the next 30 days. An announcement will be shared when the distribution is complete and reimbursement begins.
Best for: Users who prefer a hands-off passive approach.
Keep your RTs in the staking contract and allow the protocol’s net revenue to fill the recovery pool. The protocol will dedicate 50% of revenue to pay back affected users. Weekly transfers of revenue will accumulate in USDC, which you may redeem whenever you choose.
Best for: Active platform users.
For our active users, RTs can be burned weekly to rebate up to 100% of Arcadia platform fees generated that week. This option allows active users to reclaim losses at an increased rate, since 100% of the fees you generate will go to burning only your own RTs, when compared to pooling your fees together with everyone else’s in a recovery pool (option 1).
Users who were not affected and continue to use the protocol are incentivized to purchase RTs below their par-value on the secondary market to offset their platform fees at a reduced cost.