Starstream Proposal for Agora Lenders

Agora DeFi
2 min readApr 8, 2022


As you may know Starstream suffered a hack recently which resulted in funds being borrowed on AGORA with the stolen STARS collateral and used to manipulate the price in order to exploit AGORA.

Both teams, along with Metis, have worked hard to track the hacker and offered a bounty for them to return funds.

20,000 Metis which was left in the Stars distributor has already been returned to Agora to cover some of this debt in exchange for an equivalent amount of STARS.

For the remaining ~$6.2M of bad debt on Agora’s system, both teams have come together to form a plan which will make Agora’s lenders whole, whilst giving both protocols the ability to recover from this.

By working together, we’re hopeful our communities will come out of this stronger than before.

The plan -

Starstream proposes that 1,000,000 STARS per week after a 3 month cliff, are emitted to Agora lenders whose assets were borrowed and are now undercollateralized and cannot withdraw their funds due to the exploit on 7/04/2022 (lenders). These emissions will continue until lenders are made whole or the remaining STARS runs out. There is no guaranteed liquidity for STARS, but Starstream will continue providing LP incentives for a year. Starstream has automated on-chain governance for veSTARS token holders which control the protocol.

Metis will act as the escrow for 498,000,000 STARS which were used to borrow on Agora. After the Agora lenders are made whole, any remaining STARS will be sent back to Starstream’s treasury.

Additionally, Starstream currently holds around 10% of StarHermes supply and earns 10% the rewards distributed from the Multirewards which comes from Starstream’s boosted pools. These rewards (currently being earnt at an estimated 442% APR) instead can be directed to affected lenders starting from this date (10/04/2022) in order to make lenders whole. This can be done via lending Starstream’s StarHermes to Agora to stake and earn Hermes/StarHermes rewards which can then be distributed to lenders.

Agora will finalise details of the logistics of how to make whole any lenders that were affected by the exploit in a separate article.

Thank you for your understanding and support during this time. We will rebuild stronger out of this.



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