[For Discussion] Distribution Plan to Lenders of Stablecoins from THE Liquidation

[huacayachief]

This discussion is now moved to AIP. We will put it up for voting on Snapshot on the 17th December and the distribution will happen the week of December 23rd.

Any additional comments can be made on the new thread below.

[AIP-32] Distribution Plan to Lenders of Stablecoins from THE Liquidation

Background When THE was listed by Binance, it caused an incident for THE lenders in our money markets; details here. During this incident, our liquidation bot was able to save about $50k of lender funds, which we plan to distribute to the lenders who took a shortfall. This discussion post is about how to distribute those funds. Ideas We are proposing a vote between 2 methods of distribution. More Details: A total of 29 accounts were affected. 23 out of 29 are small accounts. 6 out of 29 are…