It isn’t often that a market player appeals to the morality of its customers to correct a mistake. But that’s what’s unfolding this week as Alchemix Finance made traders an offer to iron out the alETH debacle that unfolded on June 16.
Alchemix Finance recently launched alETH, a synthetic yield derivative that lets DeFi users borrow 1 alETH for every 4 ETH pledged as collateral. The ETH collateral is deployed into Yearn vaults, and the resulting yield is used to automatically pay off the outstanding alETH debt over time.
Last Wednesday, a bug was discovered in the alETH contract, leaving the project undercollateralized by 2,688 ETH, roughly $5.3M at current prices, as users were able to withdraw these funds without first repaying their loans.
Alchemix is asking users who withdrew excess ETH or alETH to return these funds through this recently-launched portal.
“We humbly ask that you return any free alETH, or the equivalent amount in ETH,” Alchemix said on its website. “Doing so will help restore alETH to solvency after the recent incident.”
Users will receive 1 ALCX token for every 1 ETH/alETH returned. And those who return 100% of the excess funds will receive a special NFT with “yet-to-be-determined functionality in the Alchemix DAO.”
With one ALCX token is worth $266 at the time of writing, and ETH trading at $1,765, Alchemix is asking users to put the project and the community ahead of personal profit. Time will tell if the appeal works.
Full details of the alETH Return Program can be seen here.