GIP - 127: Should GnosisDAO reimburse liquidity providers in the Balancer EURe/sDAI pool for lost opportunity caused by the issue reported by NolanV?

Thanks for sharing NolanV! I checked it. I understood and got your point. The oracle was a Balacer responsibility, and the management of the GnosisDAO funds is a KPK responsibility. By the way, I fully agree that the communication was dreadful. I think KPK should compensate GnosisDAO and Balancer should compensate users. I still maintain that I deposited funds there because the UI showed a nice APR (I was slightly silly).

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What I see as the main fault is the delayed communication. Kpk, at least to their post above, was aware of the problem but didn’t communicate here, neither as a post here that would have been the best, but also not in their monthly reports (which would be the minimum I would expect). And this problem is not restricted to this single incident but seems to be a ā€˜feature’ of gnosis related entities (e.g. the latest trouble about gnosis pay cashback rewards). If Gnosis DAO should be something more than an extension of ltd (for legal or whatever reasons) this has to be change.

I share your sentiment of the industry. That’s why I also decided to become more active here as well. Not only in person in Berlin. This Narcist Greedy attitude that persists throughout the industry.

I thought Gnosis is better, but they run somewhat on this too. Especially the Narcist vibes are going strong. Like in Circles for example. I mentioned there are already decentralized chats. Instead of interacting with other ecosystems properly, Gnosis always seems to fall for the not invented here syndrome.

As you clearly show, they are not smarter than anyone in the ecosystem. Thanks for this work.
Even though certainly quite a lot of good things came out of the Gnsosis ecosystem.
Thanks Nolan. Little bit Stockdale Paradox going on here. There is not much hope left.

Maybe that’s the point where you should ask for fundamental changes in how to approach things.
Aka getting more responsibility and accountability in peoples head. This is not some fun little toy project any more, probably hasn’t been for quite a while.

So, whatever you do. Don’t give up. Keep pushing, whatever comes in your way. Hope that helps to give you some energy. :heart:

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Hi Stefan, can you provide an update on the above?

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I honestly don’t understand why people keep bringing up communication issues… all you need is infinite patience, a bit of luck and you might get a reply. :smirk:

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Up !

I hope the DAO remembers all this at the next KPK vote.

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NolanV saw the numbers bend,
A pool mispriced, a yield to mend.
They flagged it clean, no bounty sought —
Just fix the math, restore what’s lost.

kpk replied, with graphs in tow:
ā€œA bug, yes — but not quite woe.ā€
They washed the stats, they spun the tale,
Till DAO debate began to pale.

A vote was cast, a plan was penned,
A gesture made to make amends.
A grant proposed, a nod, a cheer —
Then silence stretched from week to year.

Now Nolan waits, reward unpaid,
While forums cool and threads degrade.
In DAOs, it seems, the pipes run deep —
But plumbers still don’t earn their keep.

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Maybe the DAO should start preparing for a future without kpk, and maybe even without GnosisLTD, which seems to be covering for the former’s incompetence.

Personally, I’m waiting for kpk’s token to hit the market to release one last juicy piece of information. The advantage of the blockchain is that it never forgets.

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hello, I’m a long-time gno liquidity provider that got impacted by the recent balancer hack. my GNO pools are zero now, and community funds were also lost. how will we be compensated? i don’t see any communications regarding this. please help my savings.

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https://x.com/Balancer/status/1986104426667401241

We remain committed to the original assessment we crafted for this issue:
The pool configuration introduced a window of opportunity for arbitrageurs to profit from the differential price between EURe and EUR elsewhere. Depending on market conditions this led to an accumulated IL (Impermanent Loss) of 10.83%, which for GnosisDAO position can be represented in dollar terms as USD ~53,676.6207
On April 7th with the new rate cache duration, these losses started reverting since the pool could start accumulating correctly.

We have followed the discussion happening in the forum and elsewhere and after gathering feedback within the forum and with different stakeholders, we decided that although we cannot bear the losses of anyone who interacted with the pool, we returned to GnosisDAO treasury 774.1735 GNO that represented USD 100k at the time of the interaction as a symbol of goodwill. This was done in October 31st 2025, in this transaction https://gnosisscan.io/tx/0x6d927a62e77fb90aa7b984c47f47d6fc374f7807bc158b5c4b32875fbcba97a9

Moving forward we will endeavor to be more public about not only the decision making process regarding allocations but also on any issues related to oracles.

As for GIP127, as kpk is the original author, we decided not to pursue it further, considering the matter closed.

Sure, after losing/freezing 100% of your users’ money, I guess you can consider the problem closed :rofl: :rofl: :rofl:

I’ll just reiterate that even after the cache issue was fixed, the pool continued to lose money, both for the GnosisPay users who were unlucky enough to use the pool over the weekend, and for the LPs who were naive enough to believe your lies.

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