Compensation for Assets Lost in Soroban AMM Migration
Aquarius DAO governance proposal to compensate a user 15.7M AQUA (50% recovery) for losses incurred in the XLM/AQUA stable liquidity pool during the Classic-to-Soroban migration. On January 25, 2025, UX issues led the user to deposit highly unequal amounts, triggering $42,000 in losses. The proposal pairs DAO contribution with community matching.
On January 25, 2025, a user lost approximately $42,000 USD due to UX confusion during Aquarius's Classic-to-Soroban liquidity pool migration. The user inadvertently deposited highly unequal amounts of XLM and AQUA into a newly-created stable pool, triggering immediate arbitrage. Aquarius support disabled further deposits but the loss had already occurred. Aquarius DAO now proposes compensating the user 15.7M AQUA (50% of ~31.5M AQUA lost), with the remaining 50% sought from community contributions. The incident revealed multiple interface design gaps—misleading pool sorting and color indicators—that have already been addressed with further improvements planned. This governance decision acknowledges shared responsibility between protocol and users while demonstrating commitment to identifying and resolving risks before they affect more participants.
