JPEG’d, a NFT-backed crypto lending app, recently lost nearly $12 million in crypto during the Curve exploit. To save the protocol from financial uncertainty and its customers from complete decimation on their positions, JPEG’d agreed to pay the exploiter a 611 ETH bounty to get 5,495 ETH (90%) back. Now, investors governing the JPEG’d DAO are voting on how to fill the remaining hole.
The option that’s overwhelmingly in the lead splits the pain between non-paying customers of JPEG’d and the DAO itself, said a pseudonymous user experience, or UX, developer for JPEG’d who goes by the screen name 0xtutti. Generally the community cared about protecting paying customers as much as possible.
Called option D, it would see pETH price speculators and yield farmers who did not deposit into Curve via JPEG’d in-house service, called Citadel, get most of their money back, but not all. That’s in contrast to paying customers: pETH minters who paid a small fee to earn interest in a Curve pool through Citadel. They get made entirely whole. The DAO will incur a net loss of 484 ETH (about $802,000) and 861 million JPEG tokens (about $450,000) under this plan. It also plans to replace pETH with a new derivative token that it will airdrop to all holders, no matter what option wins.