Replace Auction for sINV
Summary
As part of our ongoing commitment to security and efficiency, we propose winding down the xy=k auction of the sINV contract following the discovery of a minor bug during internal testing. While a temporary, “band-aid” fix can address the issue, we believe it is in the best interest of the protocol and its users to fully redeploy the contract given the early detection. Although no present vulnerabilities exist, the current code could potentially lead to future losses under specific circumstances. User funds remain secure, and withdrawals are fully available on demand.
Background
sINV was launched under “guarded mode,” a strategic approach that limits deposits and reduces exposure while allowing the team to monitor and make adjustments during the early stages. This strategy allowed us to detect a minor issue. While no immediate vulnerabilities have been identified, we believe the nature of the bug could open up potential risks under future conditions.
At this stage, we deem it more prudent to redeploy the contract now to safeguard the long-term integrity of the sINV product. Our deposit limit has minimized potential impacts, enabling us to address this issue swiftly and efficiently without major disruption.
Current sINV stakers will be able to seamlessly migrate from the old to the new sINV via the standard UI: Inverse Finance - sINV
Plan of Action
In order to disincentivize staying in the old sINV contract, the auction K value will be ramped up, stopping future DBR buys.
All current holders of the old sINV (see list of 14 eligible addresses here: sINV_gas_reimbursement_list) will be eligible for ETH gas reimbursement for the following 3 (one-time) transactions (up to a maximum total value of 0.01 ETH per wallet): unstaking from the old sINV, approve INV for spend on the new sINV contract, depositing INV into the new sINV contract.
Smart Contracts
New sINV: 0x08d23468A467d2bb86FaE0e32F247A26C7E2e994
On Chain Actions
- Set the target k value in the auction of the old sINV contract to 1E+55, decommissioning it