[For Discussion] Handling of bad debt from recent stkBNB's depeg

Thank you. I went back and read the language in the Insurance Plan:

What the Alpaca Insurance Plan covers

It will cover any shortfall event for which Alpaca Finance’s code or infrastructure is responsible, including: bad debt for lenders, smart contract risk, exploits, economic design failure, severe oracle integration failure, etc.

After then double-checking with staff, in this specific case for stkBNB where the depeg happened due to events on a sequence of external protocols (ankr exploit → stkbnb wombat pool), and our liquidation engine and Oracle Guard still worked as intended, one could argue that Alpaca Finance’s code or infrastructure was not responsible, because it’s hard to say what we could have done better.

So it should go to a vote and xALPACA holders will decide whether to cover the bad debt to lending or not.