CP131: Recovery of lost tokens in bridge transaction 2

Centrifuge Governance Proposals
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1 
cp: 131
Title: Recovery of lost tokens in bridge transaction 2
authors: @Rhano
contributors: @WilliamFreude, @jeroen, @cdamian, @goperez
uses-component: cp4
technical-proposal: yes
requires-onchain: yes
impacts/modifies:
status: rfc
date-proposed: 2024-10-08
date-ended:

Short Summary

Recovery of lost tokens in the bridge transaction.

High level objective

Mint the lost tokens into a keyless account and force transfer the amount to the affected wallet.

Background

The 3rd October at 4:56:54 (UTC), a user attempted to bridge CFG tokens from Centrifuge to Ethereum.

Bridge direction: CFG -> wCFG

Affected wallet address: 4bXMbJq5Et849m7cnic4xuGLjkMC3KvNmM9PJi2hFaXR2wg2	

Tx link: https://centrifuge.subscan.io/extrinsic/6431655-2
				
Value: 626,070.8929 CFG + 100 CFG Bridge Fee = 626,170.8929 CFG

The transfer failed due to rate limiting on the infura endpoints that we were using to query Ethereum. The fix consisted in switching to tenderly endpoints.

Description of Activity

Since the tokens were deducted from the source account, but they have never been minted or wrapped on the destination account, the tokens have been marked as lost.
This means that the tokens were deducted from the circulating supply and they have never been minted on the destination network.

This proposal aims to restore lost tokens on affected accounts by minting the total lost balance in a keyless account and then “force transfer” the corresponding amounts to affected address.

Calculation:

Total CFG lost: 626,070.8929 CFG
Bridge Fees: 100 CFG
Grand Total CFG: 626,170.8929

Change or improvement

Recovering the lost tokens on affected wallet address.

Alignment to the mission of Centrifuge DAO

Transparency and accuracy are fundamental in Centrifuge DAO.
Recovering the lost tokens will restore financial accuracy and ensure that all financial activities are accurately recorded and accounted for.

Governance process for this proposal

After 7 days in the RFC period, the process for this proposal will be:

  1. Council Motion + fast-track
  2. Referendum vote open for 7,200 blocks (~24 hours)
  3. If the referendum passes, the tokens will be minted into a keyless account and force transferred to the affected wallet immediately after
2 Likes
2

This is the second time a substantial amount of tokens has been stuck on the bridge. Although I support the recovery proposed in this submission, I think a clear explanation of the problem and more important a permantent bug fix should take place to avoid such problems. This is in favor of the DAO and the investor/owner of the coins.

Thanks for the clarification and the support!

2 Likes
3

CP131 has been submitted to the council as Council Motion 103.

Once 5 councillors approve, it will become a referendum for all CFG token holders to vote on.

Please vote on Council Motion 103 at your earliest convenience, councillors.

Vote on SubSquare: CP131: Recovery of lost tokens in bridge transaction 2

Vote in the portal: CP131: Recovery of lost tokens in bridge transaction 2

@Yarosl6 @lucasvo @thespaceacatjr @prankstr25 @vedhavyas @mikiquantum @cassidy

Thank you.

4

Council Motion 103 has passed in the council and has now become Referendum 65 for all CFG token holders to vote on.

The referendum is open for 7,200 blocks (~24 hours).

:ballot_box: Vote in the portal: CP131: Recovery of lost tokens in bridge transaction 2

or

:ballot_box: Vote on SubSquare: CP131: Recovery of lost tokens in bridge transaction 2

Please vote on the referendum.