This post outlines a distribution to rebuild trust in Gro and win back users, a list of impacted wallets with distribution amount, and the principles for how individual allocation has been calculated.
Background
- Gro Protocol was impacted by the recent depegging of the UST stablecoin, the third largest stablecoin by market cap. One of four strategies was exposed to UST through Curve on Ethereum. As the leveraged product, Vault took a larger share of total protocol losses since it also took on the loss of PWRD.
- Since then, Gro has increased DAO participation in whitelisting the yield strategies used for PWRD and Vault, together with setting a maximum Vault exposure that you can read more here.
- We have also proposed to implement a 400bps stop-loss mechanism – all GRO holders can vote here. The vote will be live until Friday 24th June 2022.
- In addition, we have listened to community suggestions for distributing Treasury funds to rebuild trust in Gro and win back users. Subsequently, a draft vote was shared on the community forum to invite further feedback in how it’s formulated.
- Vote 16A and Vote 16B was live for 7 days and concluded on Tuesday 14th June. This post details the next steps in Treasury distribution voted by the DAO to rebuild trust with Vault users impacted by UST depeg.
Total distribution
Total distribution amount is based on the weighted average of outcomes in Vote 16A for stablecoins and 16B for GRO tokens respectively.
- Vote 16A: $2,171,850 in Vault (GVT) or PWRD*
- Vote 16B: 229,475 GRO tokens
*See the “Distribution mechanism” section for details
Distribution list
In the distribution list you will see your wallet address, GVT balance at the snapshot (in GVT tokens; for dollar amount please multiply this with $176 with 9th May price), total stablecoin distribution, and GRO token distribution. Please access the list here:
It is prepared based on the distribution mechanism in the next section. Please read on for more details on how the allocation is calculated for each wallet. We also have an FAQ here to capture any questions raised by the community.
If you find any discrepancies on the GVT balance, calculated distribution amount, or if you do not see your wallet address (but confirm that you have at least $100 in GVT at snapshot at block 14753568), please report it using this form by End of Day Wednesday 22nd June 2022 (UTC time). Note that this deadline was extended to 7am UTC on Friday 24th June 2022 and is now past; all reported inaccuracies have been processed. If you were using Vault through Argent zkSync, the list has been updated with the L1 address you’ve submitted and the second column should mark “Yes - distribution starts in June”; if you have not submitted an address, you still have until mid-August to reply to the email and we’ll process your distribution in one batch in late August.
Argent zkSync users may need to go into “Transactions” tab on the app and look up the transaction in zkscan.io to find your zkSync wallet address.
Distribution mechanism
Vote 16A: Vault/PWRD distribution
Distribution to individual wallets is based on a snapshot of the wallet’s Vault (GVT) balance at block 14753568 on Wednesday 11th May 2022, when GVT value was marked down significantly due to UST depeg. The balance includes:
- GVT held in wallet
- GVT staked to the single-sided liquidity pool
- GVT in the GVT/GRO pool where the LP tokens were staked at Gro
An individual wallet’s share of the $2,171,850 distribution in Vote 16A is based on:
where the total GVT balance was 118,135 (with applicable exclusions detailed below) at snapshot with current data. See below for a numerical example.
Minimum cut-off of distribution at $10:
- If a wallet would receive less than $10, the wallet would be excluded from distribution (to avoid routing funds to wallets where it is uneconomical to claim due to gas).
- The funds will be directed to other wallets so that the total distribution amount remains the same.
- Based on the voted amount, that means wallets that had $100+ in GVT on 10th May will receive this distribution.
Distribution of <$1000 will be made upfront:
- Wallets that would receive less than $1000 would receive all funds upfront in GVT.
- The funds will be directly sent to your wallet.
Distribution of $1000+ will be made over 24 months:
- Wallets receiving $1000 or above would get the funds in PWRD or USDC with linear vesting over 24 months.
- Vesting and claims mechanics will be detailed in the next post.
Distribution to Argent zkSync users:
- Argent will email zkSync users to ask for a mainnet (L1) wallet address (whether it’s on Argent or other wallets) to be used for the distribution. This email will be sent on Friday 17th June 2022 – please reply by Thursday 23rd June 2022. This deadline has now past. The list has been updated with the L1 address you’ve submitted and the second column should mark “Yes - distribution starts in June”; if you have not submitted an address, you still have until mid-August to reply to the email and we’ll process your distribution in one batch in late August.
- Funds will then be sent out to the mainnet address provided through the email. For those receiving a distribution of $1000+, the funds will be released over 24 months.
Applicable exclusions:
- Excluding distribution to any pools or operational wallets that provide services to users, such as the Gro harvest bot or pools that provide liquidity to users
- Excluding distribution to Gro DAO Treasury despite the Treasury took a $2m+ loss due to UST depeg, in order to maximise the total protocol user benefits from this process
Numerical example
- If you had 20 GVT (~$3,520 before UST depeg) on 11th May, your distribution would be
20/118,135*$2,171,850= $367.69 in GVT. As your distribution is less than $1000, you would receive the full amount upfront in GVT tokens. - If you had 2,000 GVT (~$352,000 before UST depeg) on 11th May, your distribution would be
2,000/118,135*$2,171,850= $36,768.95; as your distribution is over $1000, you would receive the funds over 24 months in PWRD stablecoin.
Vote 16B: GRO token distribution
Distribution of GRO tokens is made to those who are eligible to receive a distribution in Vote 16A, with a minimum of 50 GRO tokens per wallet in order to broaden DAO participation. The portion beyond the first 50 tokens would be determined by your share of GVT balance at the snapshot detailed in the Stablecoin distribution section above.
An individual wallet’s share of the 229,475 GRO distribution in Vote 16B is based on:
where the total GVT balance was 118,135 and the number of eligible wallets is 2,016 at snapshot with current data. See below for a numerical example.
Numerical example
- If you had 20 GVT (~$3,520 before UST depeg) on 11th May, your distribution would be
50+(229,475 - 50x2016) x 20/118,135= 71.78 tokens. - If you had 2,000 GVT (~$352,000 before UST depeg) on 11th May, your distribution would be
50+(229,475 - 50x2016) x 2000/118,135= 2,228.43 tokens. - All GRO token distribution would be distributed on Rewards Centre in the Gro dApp.
Distribution mechanism:
- All tokens will be distributed in one go through the Gro Rewards Centre on Ethereum mainnet at Gro
- This distribution abides by the standard GRO vesting mechanism where each user can choose to claim and enter a 12-month vesting arrangement, or withdraw 30% immediately and give away the remaining 70% to the Vesting Bonus Pool
- Those who choose to vest your tokens can then choose to claim from the Vesting Bonus Pool every 4 weeks
- Claimed GRO tokens can be used for voting whether they are in your wallet or stay in the 12-month vesting mechanism
- As GRO Rewards Centre is only available on Ethereum mainnet, zkSync users would need to provide a mainnet wallet address in Argent’s email; once the distribution is made, you can then connect to Gro dApp with the mainnet wallet provided to access the Rewards Centre and claim your GRO tokens
Claiming GRO from Rewards Centre:
- Once the distribution is live, users have 60 days to claim the tokens and decide whether to withdraw 30% immediately (forfeiting the rest) or vest over 12 months
- For more information in our vesting mechanism, please refer to our docs at Vesting mechanism - gro Docs
- For a more detailed step-by-step guide in claiming GRO rewards, please refer to our docs at How to claim rewards - gro Docs
