Hi fellow frogs,
There are discussions that seem to be taking the spotlight focusing first on the direction of the protocol, however I feel that reparations need to be prioritized for the community before anything and I feel many would agree.
Regarding this topic, there are many voices asking for reimbursements for those who were unfairly liquidated under backing price and rewards for hodlers who feel should be compensated as well for choosing to stay in the protocol and save it from going to zero. These seem to be the loudest voices.
Seeing both perspectives I would agree it would be fair to compensate both sides in my opinion. I also suggest that we include the frogs who bought at or above backing price and sold under backing price and suffered realized losses. There could be many valid reasons as to why people sold under the backing price. Either because they no longer believed in the protocol, were forced to sell to protect themselves from liquidation on Wonderland or on other protocols, etc.
It is not Wonderlands fault if someone sells at a loss by their choice. With that being said, Wonderland is in control of performing buy backs to bring price back to the backing price and if the protocol had respected this line of defense as promised then frogs who sold could have limited their losses if they were able to sell at the floor, the backing price. As of the time of writing, the price is still under the backing value.
However, the buy backs didn’t happen in order to protect the treasury funds from malicious actors who seeked to gain from arbitrage. The treasury came first before frogs, which is painful but understandable. There would be no frogs to save if the treasury was depleted.
Now that the worst has seemed to pass, the focus needs to come back to reparations for damages caused to EVERY frog unfairly affected by Wonderland failing to keep its promise.
If you were Daniele and you wanted to make a win/win decision to compensate the entire frog community for unrealized or realized losses that occurred under the backing price without discriminating, how would you go about it?