The Alchemix operational team has identified and addressed an unintentional incorrect allocation of ALCX rewards for liquidity providers in the ALCX-FRAXBP and alUSD-FRAXBP Votium voting markets.
During a routine deposit process, the operational team mistakenly deposited a 5,690 ALCX reward in the Votium voting market for ALCX-FRAXBP instead of alUSD-FRAXBP on April 15th, 2023. (https://etherscan.io/tx/0xce47601ffe1206f968b0891581e9be28b86cf79fb1af89a4685fb8e9d81ba2c3). Upon discovery of the error, the team took immediate action and successfully deposited the intended rewards for the alUSD-FRAXBP market, ensuring that liquidity provision in both markets will not be negatively impacted. The team also tried to redirect the ALCX-FRAXBP deposit to alUSD-FRAXBP, but it was too late in the voting process to allow for it.
As a result of the inadvertent deposit, users will experience a temporary period of increased APR on the Curve and Convex platforms for the ALCX-FRAXBP market. The voting market incentives will go back to the usual, governance-approved allocations next epoch.
Additionally, in order to mitigate the loss to the DAO treasury, Alchemix will recapture some of the value of the ALCX that was sent to the incorrect contract by adding approximately $800k in liquidity to the ALCX-FRAXBP pool on a temporary basis and staking it. This liquidity will be removed in the following epoch, when rewards have returned to normal. Alchemix will buy back the entire 5690 misallocated ALCX , even if the funds raised by the LP falls short.
Alchemix remains committed to providing a secure and transparent environment for its users. We apologize for any inconvenience this incident may have caused and would like to reassure our community that we are taking measures to prevent any such errors in the future, starting with further training the multisig signers so they can spot such errors if they occur before it is too late, and with adding progressively more automation over time. The trust and support of our users are our utmost priority, and we will continue to improve our processes to better serve our community.
For any questions or concerns, please contact our customer support team on Discord.
