Revest Finance Multisig Acts Decisively to Prevent Abuse of Funds by Legacy Team
Today, the Revest Finance Multisig acted decisively to secure the future of our enterprise and ensure the continued existence of our liquidity pool. In the face of a slow-burn rug-pull by all but one of the members of the Legacy Team, we made the difficult decision to reassert control of our liquidity pool from all founding members who are no longer involved with the Protocol’s development. While we took all efforts to avoid this dispute becoming public, including offering buyouts to the best of our ability, in an unfortunate turn of events, the situation has moved beyond our control. As such, we’ve put together this statement to transparently share with the public both what this means for Revest and why we have made the choices that we have.
No user funds are impacted by this action, nor will the price of the RVST token be materially impacted — control of the locked liquidity tokens has simply been taken away from a group of people whose actions would have ultimately ended the Protocol’s ability to meaningfully operate. The core goals of the Revest Protocol and its team, to see non-fungible positions properly tokenized with non-fungible instruments, have not changed, and our ability to reach them has only been strengthened by these actions. Both the core protocol and the staking system are not impacted by this series of events and the Multisig does not expect any meaningful fallout, either financial or legal in nature, as a result of this course of action.
Why was this done?
Following our launch, slightly over half of the Legacy Team was able to convince, with serious reservations, the other half of the team to willingly distribute the LP tokens generated from our raise and subsequent creation of a Uniswap V2 liquidity pool. This was done ostensibly under the banner of decentralization, though questions have since come to light on the ulterior motives of some involved; that aside, it slowly became obvious that this was not a tenable state of affairs. As those involved with creating Revest, many of whom had begun to lose interest following the launch of the Protocol in September, began to drift away, it became apparent that some had begun pulling and selling all LP tokens they had access to. In early December, a team meeting was called to address this, during which it became clear that a “prisoner’s dilemma” had been created. As LPs were pulled, whoever pulled them would receive both ETH and RVST tokens — however, as became evident from the actions of Jared, Mickle, and Thetoprat (followed shortly by Chris, Louis, and James), the incentive to simply dump the RVST tokens back into the liquidity pool for more ETH was too tempting of an offer to ignore. Team cohesion broke down fully, and a low-velocity rug-pull began to gather speed. Following a mid-December rebuild of the core-team, Rob grappled with this situation for months before finally realizing that there could be no gentle solution to the problem. This resulted in the Multisig making the difficult choice to reassert control over the offending LP tokens.
What was done?
The method by which this was done was not one which would typically be under consideration, even with the aforementioned problem in mind. Prior to the exploitation of the Revest Protocol in March of 2022, plans for dealing with this problem primarily centered around migration of the token via secondary means. However, a bug in the Revest ERC-1155 implementation that was utilized during the exploit, though fully neutralized as a threat-vector by battlefield upgrades, nevertheless necessitated a redeployment of the Revest ERC-1155 contract. This redeployment required that all FNFTs in existence be re-minted to FNFT holders, an operation that was previously described here. During this operation, rather than re-minting the LP and team-token FNFTs to the original team (who have long-since been given their targeted 20% of total token supply), those FNFTs were instead minted to the Revest Protocol Multisig for use as “Protocol-Owned Liquidity”. They will ultimately be given over to DAO governance once those systems are established.
What does this mean?
Had these actions not been taken, significant sell-pressure on the RVST token would have continued, with significant downward-pressure from Legacy Team selloffs being brought to bear every 3 months (next unlock in June) until June of 2023. At this point, aside from Founder Rob Montgomery, no LP tokens remain under Legacy Team control. Furthermore, both Rob and Mickle have been permitted to retain ownership of their remaining vested Team Tokens, in gratitude for their ongoing involvement with the development of the Revest Protocol. By alleviating this inorganic sell-pressure on the token, the Revest Protocol Multisig has secured its ongoing ability to pay employees and contractors, along with ensuring that the public trust placed in the Multisig by the Revest Community will not be subject to abuse by avaricious ambitions. From this point forward, beyond the previously specified edge-cases of the team tokens, there are no remaining token unlock events.
The Revest Team will continue to build as we always have, and we are incredibly grateful to be reaching the edge of the woods, so to speak. Despite this simmering situation, we’ve been building a great deal, and we can’t wait to share more about Resonate with you.
Who is who?
- Rob: 0xD76F585b6B94202430875aE748fF8C038Dc64111
- 0xFoobar: 0x7E22AebC01ef48A2A6D39EaDF37b3BFac17C9649
- Louis: 0x9f75d69380a505a4e2AedB5C2dfdf41809E4D6C6
- Chris: 0x677b038Bc2DB99851be553673d0cBf8Cac6A0F3F
- James: 0x4D3f9F513FC366Aa075e53B592dCE9c14BF838A6
- Theto: 0x314Dd53a6074Dcc8F6e44d05a86f7DdA212bbea7
- Theto: 0xcf7434dBB0f4F61855ADF5e9A3c117d9B5fAe903