Leveraged Vault Patchfix Notice

Teddy Woodward
Teddy Woodward

On Thursday Jan 19th, the Notional Team discovered a low severity issue on the wstETH/ETH leveraged vault during the course of routine testing. The team verified that the issue was not exploitable, that no funds were at risk, and that the leveraged vault could continue to operate normally while we worked on a fix. We implemented that patchfix on Sunday Jan 22nd and everything on Notional is operating normally with no negative impact to users.

The issue

Following the quarterly roll on December 23rd, some internal accounting measures on the vault fell out of sync with accounting on the Notional side. This caused Notional to slightly undervalue vault shares. The fix corrected this accounting issue on the vault side and Notional now correctly values vault shares.

User impact

All leveraged vault users with funds on Notional should see a minor increase in their net worths today following the upwardly revised value of their vault shares.

All leveraged vault users who exited the vault after December 23rd redeemed their vault shares for slightly less than their true value. The Notional team has transferred ETH to recoup this difference in value to each one of these users from address 0x9299B176bFd1CaBB967ac2A027814FAad8782BA7. The total amount transferred was 1.328 ETH across 4 users.

We want to thank our users for trusting Notional with their funds. We will continue to develop the protocol with security at top of mind and react quickly and transparently to any issues in production code that should arise.

The Notional Team

Teddy Woodward

Co-Founder and CEO