Thanks hsingh21. Right now it is simply an issue of tossing out enough reasonable compensation scenarios.
My issues are as follows:
- Do we just compensate 0-bid vault holders. (where 0-bid means all auctions that claimed < 10% of the tab/1.13). Scenarios here are how much collateral value 1-25%
- Do we basically compensate everyone that came up short (relative to the 1-25%) on collateral return during some specified time period. This includes all auctions that paid full tab but did not return very much (if any collateral).
2a) If we do this what is the reasonable percentage of collateral makeup 1 up to 25% (so I am running 1-25% numbers in increments of 1%). Realize even in a well working auction system 24.67% is pretty much the optimal value one can expect and is based on
EDIT ADD: correction due to maxlev collat ret = (LR-1*LF)/LR = (1.5-1.13)/1.5=24.67%
In the above I simply look at this from the perspective of ETH lost and don’t even try to associate a DAI value. We can deal with this as a seperate issue if people decide they want to figure this out in DAI. I do have market pricing data.
Along with this report has to come an analysis of what happened pre Black Thursday (3/12-3/13), and then between Black Thursday and the governance auction change (3/13-3/16) and then auction data post 3/16.
I also want to present something of a general report including totals regarding amount of ETH liquidated, total tab value, liquidation gains, losses, etc. before breaking that data down into details.
The point of this analysis is to give everyone an inside look into the guts of how the auction system is working in the MCD both in good and bad times (black thursday being the worst) and given the current construction of the system (LR, and Liquidation fee) in conjunction with auction performance in terms of market price yield (as a % of market prices on various exchanges at the time as well as OSM) over these dramatically different periods.
Excuse the lack of brevity in the reply I am still in the thick of this trying to get everything together. Once a decision is made on the actual scenario I will produce a vault by vault compensation report.
The other thing is I have to add vaults that self liquidated that are also seeking compensation. If I forget you guys - don’t worry once I get this first run done on the data I will be revisiting all the claims where people self liquidated. It is my hope that once we figure out how much collateral we will make up people can then look at what they did themselves and determine if what they got back was over or under the level of collateral compensation the community will be looking at.
The goal here is that once we decide the class of people who will receive compensation and the level that everyone within that class will be treated equally. If there are ‘special’ cases outside of the ‘class’ we decide these probably will have to be petitioned to governance specially. Rather than have to vote on each one seperately I think we will want to bundle those.
This is just off of the top of my head thinking and notes. I know a lot of people are watching the status here and if I can get another 4-6hrs uninterrupted time I should be very close to completion of my basic work. Then I have to actually write up the report noted above.