Dear ALEX Community,
We would like to inform you about two important upcoming governance votes that will start immediately after our AMA, scheduled for May 28 at 2 PM UTC (https://twitter.com/i/spaces/1ypKdkwkwaaxW…).
Your participation is crucial in shaping the future of ALEX, and we encourage all community members to engage in these votes.
Below are the details:
Part 1: Governance Vote on Treasury Grant Program
Based on the community feedback and suggestions, as summarized in our recent announcement (https://x.com/ALEXLabBTC/status/1794681669179310507…), the Foundation has selected three feasible and immediately actionable proposals for a governance vote by the community to decide on the Treasury Grant Program.
The governance vote page will be available on https://ballot.gg from 3 PM UTC on May 28, 2024, and the relevant voting token (https://x.com/ALEXLabBTC/status/1794883894820384850…) will be distributed over the next 12 hours.
Vote Period: 3 PM UTC May 28, 2024, to 3 PM UTC May 30, 2024
Vote Token: SP102V8P0F7JX67ARQ77WEA3D3CFB5XW39REDT0AM.token-special-vote Vote Details:
Choice 1: Abstain
Choice 2: Synthetic STX (14 million STX)
Summary: Using $7 million USDC + 16% ALEX reserve (current valuation around $40 million, with over collateral value 1.5x) as collateral to mint 14 million aSTX or iouSTX. Any recovered STX and the protocol revenue will be sent to the collateral pool to maintain the collateralization ratio of 1.5x.
These synthetic STX will be added back to LP pools and eligible for future farm rewards. The token may be redeemed with the underlying collateral distributed to the token holders, subject to a governance vote.
Choice 3: Synthetic USDC (28 million USDC)
Summary: Using $7 million USDC + 16% ALEX reserve (current valuation around $40 million, with over collateral value 1.5x) as collateral to mint 28 million aUSDC. Any recovered STX and the protocol revenue will be sent to the collateral pool to maintain the collateralization ratio of 1.5x.
These synthetic STX will be added back to LP pools and eligible for future farm rewards. The token may be redeemed with the underlying collateral distributed to the token holders, subject to a governance vote.
Choice 4: Fairly Distribute the Remaining STX in the Vault to Cover LP Loss
Summary: 150k STX recovered so far is distributed fairly among all LP holders.
The remaining loss is substituted with $ALEX token with an exchange rate of 10 $ALEX per STX.
The substituted $ALEX can be redeemed over the next 32 cycles in equal amounts (i.e., 32 installments).
Any recovered STX during the redemption period will be returned fairly to all LP holders in exchange for reducing the $ALEX to be redeemed at the same exchange rate of 10 $ALEX per STX.
All other recovered assets will be returned to the LP holders immediately. The $ALEX to be redeemed will accrue staking rewards in accordance with the $ALEX staking yield pre-exploit.
The Foundation will deploy $7 million to create a STX/$ALEX to provide liquidity to the platform.
Part 2: Governance Vote on Re-opening of Pools
In our recent announcement (https://x.com/ALEXLabBTC/status/1794883894820384850…), we mentioned that some unaffected pools that do not require migration can open immediately.
These include xUSD/USDA stableswap, STX/xBTC (legacy), STX/sUSDT (legacy), STX/Welsh, STX/xUSD, STX/MIA, and STX/NYC. Many community members have expressed a strong desire to reopen these pools as soon as possible.
While we at the Foundation also want to reopen ALEX quickly, we recognize the risk that reopening may allow the exploiter to move stolen STX through these pools, potentially making them unrecoverable.
We must balance the benefits of reopening the pools against the potential risks, and therefore, we are seeking the community’s decision through a governance vote.
The governance vote page will be available on http://Ballot.gg from 3 PM UTC on May 28, 2024, and the relevant voting token (https://x.com/ALEXLabBTC/status/1794883894820384850…) will be distributed over the next 12 hours.
Vote Period: 3 PM UTC May 28, 2024, to 3 PM UTC May 30, 2024
Vote Token: SP102V8P0F7JX67ARQ77WEA3D3CFB5XW39REDT0AM.token-special-vote
Vote Details:
Choice 1: Abstain
Choice 2: Yes, we should reopen the pools now.
Choice 3: No, we should wait longer before we reopen the pools.
We thank you for your participation and support as we navigate these important decisions together. Your voice is crucial in shaping the future of ALEX.