Post-incident Update: Exploit lazy vault

General Discussion Feeback
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@Davids & @Yinwa

Hello and thank you for reaching out. There are ~13 onchain DAO votes (queued atm) that are addressing offboarding of inactive arks and unpause-ing vaults (that will become withdraw-able, once executed). These are focusing on all of the vaults, besides Ethereum USDC LR and HR.

These vaults have not been affected by the exploit and depositors will be able to withdraw their funds in full upon successful crosschain execution of above mentioned proposals (~22.07.2026).

When it comes to the affected vaults (Ethereum USDC LR and HR) - there are two onchain proposals ([SIP1.7] & [SIP1.8]) - recovering ~$4.3M from the paused vaults that are allocated to Syrup, Term Finance & Origin.

These proposals have passed, were executed on Base; and are awaiting crosschain execution that can occur as early as 9AM UTC, 21.07.2026 on Ethereum Mainnet.

This is the first step of recovery. Once executed onchain, followup proposals have to be established to move all recovered funds from the 2 affected vaults to Merkl campaign, where affected depositors will be able to recover ~40% of their deposited value (due to post-incident socialization).

Hope this answer your questions.

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