As everyone would now be aware, the WLEO project has collapsed for now. What the future looks like is anyone's guess, and I don't envy @khaleelkazi and his team in working out how to sort through the mess. Crypto's wild west strikes again.
SPEW pool was set up to allow smaller holders to participate in the WLEO/ETH adventure. And everything was looking so rosy, with a rising LEO value, a really nice first bounty payout and blue sky's ahead. But then the shit hit the fan, in a big way.
SPEW got lucky.
I found out about the hack while I was at work, and unable to do anything about it. For 2 hours, I checked discord frequently, and stressed over saving the remaining funds. Finally, I finished my shift and raced home. In the door, straight to the computer, login to SPEW accounts and Metamask, go to the pool and remove liquidity. Push the gas fee higher and higher to accelerate the transaction. Straight to wleo.io and unwrap the WLEO. phew.
Since then, the dust has settled and the following is now clear.
- SPEW's unwrap was the very last one processed before that facility was shut down.
- SPEW has actually turned a profit, in USD terms from start to finish.
- We are so lucky. The unwrap was literally seconds before the site was shut down. 1 red light on the way home, and things would be different. I dealt with SPEW, then swapped to my personal account, withdrew and tried to unwrap. In the 2 minutes between unwrapping SPEW, and swapping to personal accounts, the site stopped.
Now, I don't doubt that @khaleelkazi and the @leofinance team will come up with a plan to make good on some of the WLEO value held by legitimate accounts, but having those funds in Hive Engine and clear makes the process of unwinding SPEW so much faster and easier.
How much was saved?
When I removed the liquidity, the account ended up with 5.88 ETH and 48,333 LEO. The current value of those assets is $9,400.91. For those following along, we started with $7044.14 in assets, in the form of 11.11 ETH and 24,648 LEO. So, against all the odds, SPEW made a USD profit of $2,356.77 in just over 2 weeks. Truly amazing how lucky things have turned out. A return on investment of 31% in 2 1/2 weeks. Without even including the first bounty payment we received.
Yes 31% profit!
The fact that the initial contribution included some ETH from a couple of people, lots from Spinvest, and then all of people's hard earned LEO complicates the maths.
Guiding principles I have used:
- Value everything going in in USD.
- Everyone gets allocated a % share.
- Value everything going out in USD.
- Everyone gets the same payout, regardless of if they put in all LEO, some of each (me, @stortebeker and @roleerob), or all ETH (spinvest)
So here is my suggestion:
In the above table you will see how everyone is proposed to be refunded. The last column shows the number of LEO tokens you will receive if this plan is acceptable to participants. For those who put in ETH, the return will be a mix of ETH (less than you put in) - and LEO (significantly more than you put) in to make up the USD returns to match the pool share. To work out the ETH component, I looked at how much each put in, and payed out the "saved" ETH in the same proportion.
Let's look at three examples:
@josediccus put 500 LEO in, worth $0.14 each at the start. Total $70 input. They will receive a payout of 615.774 LEO, worth $0.149 (price when I calculated this). Total received $91.75. Profit $21.75 - 31%.
@roleerob put in 500 LEO $70 value plus 0.25 ETH - $80.84 at the time. Total input $150.84. They will receive 999.049 LEO worth $148.86 plus 0.1322 ETH - worth $49.47. Total received $198.33. Profit - 31%
@spinvest put in 10.02 ETH, worth $3,239.86. They will receive 5.30 ETH worth $1982.78 plus 15298.258 LEO, worth $2279.44. Total received $4262.22. Profit - $1022.36 - 31%
Fair for everyone. Everyone walks away with a 31% profit.
Let me know what you think, if there are no objections to this plan, the funds will be sent around 18 hours from the time of this post. I think its completely fair, but please voice any concern's or questions asap. I want to close this book quickly, but if anyone can see a hole in my plan, please let me know.
Tagging all participants:
@spinvest, @jk6276, @tandara, @forexbrokr, @tbnfl4sun, @pouchon, @eirik, @shanibeer, @oakshieldholding, @jocieprosza, @josediccus, @roger5120, @stortebeker, @mistakili, @steemitromney, @underground, @dera123, @deflacion, @roleerob, @flemingfarm.