Transparency on Exploit Compensation Funds

Following the exploit on December 15th, 2022, a governance proposal was passed to use protocol fees earmarked for RAY buybacks to obtain target balances and compensate LPs for funds affected by the exploit.

Details on exploit exposure can be found at https://github.com/raydium-io/dec_16_exploit

Details on the compensation plan can be found at https://raydium.medium.com/compensation-plan-and-next-steps-367246a62277

For transparency, details about the funds that were used to compensate affected users are below.

Buyback Treasury funds

The Buyback treasury wallet is DdHDoz94o2WJmD9myRobHCwtx1bESpHTd4SSPe6VEZaz. Funds used to obtain target balances for affected assets originated from this address.

A portion of funds were transferred from the Buyback treasury wallet above to 9RTNjavC28HexgP2fawtJ1VdYrbV7n6Tuqc2872DBU33 in order to exercise positions and obtain assets needed for compensation.

Following the conclusion of the claims process, remaining funds in the Claim Portal vault will be returned to the Buyback treasury wallet with the exception of RAY which was contributed by the team allocation. More details on the team contribution below.

RAY Compensation

In addition to the Buyback treasury funds used to obtain the majority of the affected assets, a portion of RAY from the vested Raydium team allocation was used to compensate for a portion of funds lost.

Full details can be found here, but in general:

• Users that LP-ed in pools which included RAY in the pair, were able to claim 100% of their principal lost for a position.

• LPs in non-RAY pools were able to claim back 90% of lost funds in the original token assets for an affected pool. Users were also able to claim the remaining 10% of lost asset value (at the time of the exploit) denominated in RAY. An additional 20% of the remaining lost asset value in RAY was also added as further compensation.

All RAY used to cover the original principal exposure for RAY pairs as well as additional RAY used for compensation on non-RAY pair pools was distributed from vested Raydium team token allocation.

In total, 2,737,521.92 RAY was allocated to Claim Portal vaults and third party protocols for compensation:

• 2,668,458.70 RAY deposited in the claim portal

• 25,026.71 RAY transferred directly to individual DetlaOne position accounts

• 44,036.51 RAY transferred directly to Tulip lending vaults for leveraged positions

Following the conclusion of the claims process, RAY contributed from team allocation that remains unclaimed will be returned to the team allocation.