Songbird Launch Incident Report & Next Steps

During the launch on Songbird, we encountered an error with PSB contracts. Here are the findings, how the error is being handled, and how it affects you.

Summary

What happened?

We quickly met as a team and started identifying solutions. The first was to keep the total supply at 9.2 million PSB (i.e preminted 4%) and use everything outside of the airdrop balance as LP rewards. This was a viable option, and technically the simplest one to perform. It was quickly abandoned since it would go against our Litepaper which was approved by our legal counsel and had major changes to our tokenomics.

The next proposed solution was a 1:1 swap of newly minted PSB tokens and the original PSB token. After discussions about the length of time it would take to build a user interface for the claim, we decided as a team it would not be a fast enough solution for community members.

The planned solution

PSB-SGB LP
3x the value of PSB they held at snapshot in SGB to make up for any impermanent loss accrued

PSB holders and single-sided stakers
1.5x the value of PSB held/staked at snapshot in $SGB to compensate for any inconveniences

With this solution, even if an LP lost all the SGB from their LP pair, they should profit or break even.

To accomplish this, we needed:

  • DEX contracts to be redeployed
  • An airdrop snapshot to be taken
  • A new treasury vester contract to be prepared
  • Communications to be made in the fastest way possible

The first thing Pangolin did as a team was pledge to return any profits made and commit to further audits within the team to disclose investments in PSB.

Next was to do all of this without setting off any alarms so users couldn’t actively benefit from these mistakes. We’ve kept all communications about the minting error within a circle of key dao members and have worked nonstop for almost 24hrs to create new contracts and communications.

We hope the ramifications of this incident are properly covered, and no-one is unfairly affected. We know that this experience will make us as a team and a product more resilient and thorough for years to come.

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Pangolin Exchange

Pangolin is a multichain decentralized cryptocurrency exchange (DEX) on the Avalanche and Songbird Networks.