On Oct 11, 2022, Mango Markets suffered an exploit which consequently led to assets in their lending pools being drained. Tulip Protocol was partially affected in our USDC and RAY strategy vaults, with the amounts being 2465940.847 USDC tokens and 68475.68142 RAY tokens. Through negotiation efforts, Mango Markets have been able to retrieve some funds from the exploiter and the outstanding balance being covered by MangoDAO. With this, all users in the USDC and RAY strategy vault will be made whole with no material loss incurred.
Since the exploit, deposits and withdrawals have been disabled on the USDC and RAY strategy vaults. This ensures that the state of the vault shares have remained the same. With Mango Markets allowing users to claim their owed balance, Tulip will be able to do so for the two affected vaults. Our team will programmatically interact with Mango Market’s claim function. This function will transfer the token amounts 2465940.847 USDC and 68475.68142 RAY into each vault respectively, restoring vault balances to the same state as before the exploit. Users will be able to withdraw their balances once this has been completed. These tokens do not past through our team at any point. This will be done once this governance vote has passed.
By recovering funds, Tulip Decentralized Autonomous Entity (DAO) represents and agrees that it, and any of its contributors, agents, affiliates, officers, employees, and principals hereby irrevocably sell, convey, transfer and assign to Mango Labs, LLC all of its right, title and interest in, to and under all claims arising out of or related to the October 2022 incident, including, without limitation, all of its causes of action or other rights with respect to such claims, all rights to receive any amounts or property or other distribution in respect of or in connection with such claims, and any and all proceeds of any of the foregoing (including proceeds of proceeds). Tulip DAO further irrevocably and unconditionally releases all claims it may have against Mango Labs, LLC, the Mango DAO, its core contributors, and any of their agents, affiliates, officers, employees, or principals related to this matter. This release constitutes an express, informed, knowing and voluntary waiver and relinquishment to the fullest extent permitted by law.