Reassess 3jane USD3 after April 2026 emergency shutdown#168
Draft
spalen0 wants to merge 7 commits into
Draft
Conversation
|
The latest updates on your projects. Learn more about Vercel for GitHub.
|
Score: 3.5 → 3.75 (Medium → Elevated Risk). Key updates: - Documented April 18-28 2026 strategy shutdown via TokenizedStrategy emergencyWithdraw flow and subsequent restart. - Updated TVL trajectory and utilization (44% → 70%) reflecting post- event contraction. - Corrected Insurance Fund balance: holds ~$868K waEthUSDC (Aave-wrapped USDC), not $1M USDC as previously reported. - Documented EmergencyController v2 deployment, Hypernative agent role member, and pending OperationalController (PR #111, not yet onchain). - Added external dependency on Yearn V3 TokenizedStrategy and Hypernative monitoring/automation. - Added contract architecture diagram appendix. - Added shutdown-based, governance-based, and post-mortem reassessment triggers. Closes #156 Co-Authored-By: Claude Opus 4.7 <noreply@anthropic.com>
- Restore parseable Assessment Date by trimming the parenthetical to "(Updated: May 5, 2026)" and moving the event note to its own line — prior wording broke parseDateSortable() and left the report list rendering with no relative date. - Make the loss waterfall consistent everywhere: per-loan recovery (markdown / NPL auction / legal) is separated from the tranche loss waterfall (sUSD3 → Insurance Fund → USD3), and the Subcategory A table no longer implies the Insurance Fund is exhausted before sUSD3. - Replace stale "$1M USDC" amount in the Default Recovery section with the verified ~$868K waEthUSDC figure. Co-Authored-By: Claude Opus 4.7 <noreply@anthropic.com>
The Default contagion bullet still implied the Insurance Fund is exhausted before sUSD3, contradicting the corrected sUSD3 → fund → USD3 waterfall used everywhere else in the report. Reframed the bullet around the combined first-loss buffer instead. Co-Authored-By: Claude Opus 4.7 <noreply@anthropic.com>
- DEX liquidity: replace "TODO: re-check" with the verified onchain state — only a Uniswap V3 0.01% USD3/USDC pool (0x8E12388Ea7366Aa87445d747F83B810aD538a981) exists and holds dust (~$0.001 total). No Uniswap V2 or Curve pools. - Post-mortem TODO: keep as TODO (3jane has not published one) but document the verification — checked docs FAQ, audits repo, moneymarket-contracts repo, and web; only PR #112 exists as a public artefact of the April 2026 shutdown event. The forward-looking "Post-mortem trigger" reassessment trigger is left as TODO intentionally — it is awaiting future publication. Co-Authored-By: Claude Opus 4.7 <noreply@anthropic.com>
Cross-checked the protocol-provided "USD3 Due Diligence Document"
(May 2026) against onchain state and public docs. Key outcomes:
- Corrected the loss waterfall to Insurance Fund → sUSD3 → USD3. The
debt-write-off docs confirm the Insurance Fund is first-loss capital
("preemptively makes funds whole at default"), matching the DD doc.
This reverses the earlier sUSD3-first ordering across all sections
(Collateralization, Default Recovery, Subcategory A table).
- Added a "Due Diligence Document Disclosure" subsection flagging the
DD doc's inaccuracies: wrong governance/insurance addresses (verified
onchain — its InsuranceFund addr has no code/zero balance), a
misstated 70/30 yield split (docs + IRM confirm 85/15, kept), and the
EmergencyController being excluded from audit scope.
- Documented the protocol's framing of the April event (precautionary
Aave de-risk during the KelpDAO/rsETH exploit, dates align) alongside
the onchain evidence that a restartStrategy code upgrade was needed.
- Added the unverified off-chain ABF sleeve (SPV receivables,
multisig-pushed valuations) as a Provability concern and Key Risk —
not corroborated by public docs or onchain state.
- Corrected redemption mechanics: atomic against ~15% idle buffer;
FIFO queue is "under development", not a live throttle.
Addresses, yield split, and waterfall all verified against onchain
data and 3Jane docs; PDF-only claims are clearly attributed and
flagged unverified. Final score unchanged (3.75 / Elevated): no
independently verified new fact moved a category.
Co-Authored-By: Claude Opus 4.7 <noreply@anthropic.com>
TVL recovered dramatically (~.93M → ~7.09M, ↑173%); borrow book grew 3× (~.91M → ~9.81M); a new 7-day TimelockController now owns all proxy admins, creating a two-tier governance system (7d for upgrades, 24h for config). First-loss buffer coverage deteriorated (103% → 39%) as borrow growth outpaced buffer growth. Key changes: - New 7-day TimelockController (0x3D3C4141...) owns all 5 ProxyAdmins - USD3/sUSD3 implementations upgraded to v1.1.4 - Insurance Fund grew to ~.02M USDC (yield only) - OperationalController still not executed onchain - No post-mortem published (TODO persists) - Governance Subcategory A: 3.5 → 3.0 (two-tier timelock improvement) - Collateralization Subcategory A: 4.0 → 4.5 (buffer coverage ↓) - Final score held at 3.75/5.0 (Elevated Risk) - Graph updated: new 7d timelock node, updated allocations, fund value Co-Authored-By: Claude Opus 4.7 <noreply@anthropic.com>
The shutdown was a successfully-handled precautionary event, not an incident requiring a post-mortem. Removing post-mortem TODOs, gap notes, trigger, and scoring commentary across the report. Removed from: reassessment summary, Historical Track Record, Operational Risk, Key Risks, Category 1/5 scoring, tier justification, and Reassessment Triggers.
This file contains hidden or bidirectional Unicode text that may be interpreted or compiled differently than what appears below. To review, open the file in an editor that reveals hidden Unicode characters.
Learn more about bidirectional Unicode characters
Sign up for free
to join this conversation on GitHub.
Already have an account?
Sign in to comment
1 participant
Add this suggestion to a batch that can be applied as a single commit.This suggestion is invalid because no changes were made to the code.Suggestions cannot be applied while the pull request is closed.Suggestions cannot be applied while viewing a subset of changes.Only one suggestion per line can be applied in a batch.Add this suggestion to a batch that can be applied as a single commit.Applying suggestions on deleted lines is not supported.You must change the existing code in this line in order to create a valid suggestion.Outdated suggestions cannot be applied.This suggestion has been applied or marked resolved.Suggestions cannot be applied from pending reviews.Suggestions cannot be applied on multi-line comments.Suggestions cannot be applied while the pull request is queued to merge.Suggestion cannot be applied right now. Please check back later.
Summary
0x84b31b84917485e221305edf590b8e3660d2e051), Hypernative agent EOA holdingEMERGENCY_AUTHORIZED_ROLE, and the pending OperationalController (PR docs: Royco srRoyUSDC risk assessment (3.35 — Medium Risk) #111, not yet deployed onchain).0xd4fa2d31b7968e448877f69a96de69f5de8cd23e), not $1M plain USDC as previously reported.Closes #156
Test plan
shutdownStrategy/restartStrategyevents on USD3 strategy.🤖 Generated with Claude Code