[For Discussion] Handling of bad debt on Fantom Network

Community Discussion & Proposal
1

Background

During the last week’s market correction, Alpaca Finance platform incurred some bad debt in Fantom network. This was due to a combination of rapid price decrease, network congestion and unresponsive node on the Fantom network, causing delay in liquidation.

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Proposed Implementation:

The total amount of bad debt is 62,471 FTM or ~23k USD (at current FTM price) which represents about ~2% of the total amount of FTM liquidated.

Since the amount is higher than 10k USD, we are putting this up for a discussion to activate the insurance plan to cover bad debt for FTM lenders.

12 Likes
2

we should consider whether ftm is suitable chain for alpaca to live and expand

2 Likes
3

maybe we need to L2 like optimism

1 Like
4

One thing to note is that most/all of this bad debt was from TOMB.

4 Likes
5

My vote is to cover it.

3 Likes
6

Can I please ask how long is such a voting usually open before a decision is being taken and executed?

7

For this, we probably don’t need an AIP so it can go straight to voting and the whole process takes about half a week, but actual deployment of cover funds may take another 1/2-1 week

2 Likes
8

I shall put it up on Snapshot for voting by tomorrow.

7 Likes
9

Voting is now live on Snapshot. Snapshot

You have until 12 PM UTC, Monday May 23rd to vote.

2 Likes
10

hi, since the voting was passed mostly yes, when is it likely to be executed kindly?

11

As Sam stated earlier, in about a week or two.

12

And we will need to continue to keep ftm in lending meanwhile until it’s concluded to bei included, correct?

13

Yes, that’s correct.

14

Hi, Just checking in on an Update here kindly?

Thank you!

15

Hi,

The repayment has started and currently in progress.

Thank you,

16

great, can you foresee when it will be concluded?

17

hi again, would be really cool to have a feedback when the repayment has finished? I would assume it already has?

thank you!

18

@ADone

Sorry for the late reply.

It’s still on-going and you can see how much is left in the “4. Remaining” field, since the payback is automated.

2 Likes
19

thank you very much, how long do you estimate based on the automated payback frequency the current remaining amount 60450185677128894686944 will take?

20

so yesterday we had 60450185677128894686944

Today we have 60283199978752775051001

That is a delta of 1.66986

60283199978752775051001 / 1.66986 = 361

So you need another 361 days to finish this operation?