Starting today, we will return the funds safeguarded by Stryke and resume operations of Orange Finance. Meanwhile, Orange is launching the Orange Reboot Campaign, supported by Stryke and Plutus.

The Return of Funds Protected on Stryke

Orange Finance had been providing liquidity to Uniswap, Pancake, and Sushiswap via Stryke, while some of the funds on Stryke were being used to sell options.

Immediately after the hack, the Stryke team took swift action to pause (protect) these funds, while Orange Finance paused its rebalancing (range adjustment).

We will return the pool pair assets directly to users. Below are the asset ratios for each vault at the time of returning the funds:

• Stryke Uniswap WETH/USDC Vault - WETH (95.4%)/ USDC (4.6%)

• Stryke Uniswap WBTC/USDC Vault - WBTC (78.6%)/ USDC (21.4%)

• Stryke Uniswap ARB/USDC Vault - ARB (99.8%)/ USDC (0.2%)

• Stryke Uniswap BOOP/WETH Vault - BOOP (92.7%)/ WETH (7.3%)

• Stryke Pancake WETH/USDC Vault - WETH (90.5%)/ USDC (9.5%)

• Stryke Pancake WBTC/USDC Vault - WBTC (99.9%)/ USDC (0.01%)

• Stryke Pancake ARB/USDC Vault - ARB (82.3%)/ USDC (17.3%)

• Stryke Sushiswap WETH/USDC Vault - WETH (74.3%)/ USDC (25.7%)

• Stryke Sushiswap WBTC/USDC Vault - WBTC (99.9%)/ USDC (0.1%)

Orange Finance Operations Resumption

Vault reopening

Starting today, Orange Finance will officially resume operations, reopening the Stryke Pancake Vaults (WETH/USDC, WBTC/USDC, ARB/USDC), which provide liquidity simultaneously on Stryke and PancakeSwap.

Points Campaign will be temporarily suspended

In addition, the currently ongoing Orange Points Campaign (The Astronaut, Chapter 2: The Hatch) will be temporarily suspended. We will provide further updates on the campaign’s progress in due course.

Vault Operational Strategy

Taking into account the high implied volatility (IV at 67%) in the current market environment, we have adjusted our liquidity provision range.

Changes

• Liquidity Mint Range: ±24% (expanded from the previous ±10%)

• Liquidity Burn Range: ±29% (expanded from the previous ±20%)

This adjustment is based on historical backtesting data and incorporates an optimal rebalance frequency. In particular, in a high-IV environment, when the price approaches the edge of the liquidity range, there is a risk of negative gamma, which can reduce the efficiency of liquidity provision.

To address this, we have set a 4σ range (99.994% probability of prices staying within range), enabling a more stable liquidity operation.

We will also regularly review the rebalance frequency and liquidity range in response to changes in IV, aiming to maximize capital efficiency.

Orange Reboot Campaign

We are launching the Orange Reboot Campaign, offering rewards from Stryke and PlutusDAO exclusively to users who deposit into the newly launched Vaults.

The vaults are restarting with zero TVL, giving early participants the potential to earn exceptionally high rewards.

Rewards for the 1st week

LP Rewards for the 1st week are offered from PlutusDAO as follows:

Total Approximately. $1,687/ week

• 10k $plsSYK

• 50k $esPLS

Potential return: Assuming a 20% Migration Rate, the reward would be about 49% APR.

Rewards once Stryke gauge is live

Stryke’s Gauge Rewards

• Stryke’s Gauge Emissions (total 50k $SYK, approximately $3,700 per week) will be allocated to the Orange Vaults based on the voting

• The first reward distribution will happen after two epochs (two weeks): the first week is for voting, and the second week is for the reward calculation phase.

• The distribution ratio for each vault is determined by votes on Stryke.

• Reward Distribution Format: 50% SYK & 50% plsSYK

Potential return: Assuming a 30% Migration Rate and 85% of Stryke’s gauge rewards would be distributed to the Orange vaults, the reward would be about 61% APR.

Bonus from PlutusDAO

• PlutusDAO will commit an additional bonus to LPs with esPLS or PLS tokens based on the new Orange Vault’s TVL, which will further boost APR.

• This bonus will be available for one month following the launch of the new vaults.

Migration Guide

Compensation plan for exploited assets

We plan to reimburse the affected assets by the exploit on January 8th 2025.

Vault loss

• Plutus temporarily classifies the loss as a debt to Orange Finance.

• Plutus distributes its remaining LP position to hacked victims for compensation.

• Orange repays the remaining portion of the lost user funds.

• Repayment is made via time-locked positions.

• All positions follow these parameters: 25% locked until March 1st, 50% locked until June 1st, and 25% locked until September 1st.

Unclaimed SYK and over-approval loss

• Any unclaimed SYK and losses stemming from over-approval will be repaid through a separate mechanism. Details on this process will be provided as soon as they are finalized.

Finally,

We appreciate everyone’s patience and support as we resume Orange Finance and launch the Orange Reboot Campaign. With funds safeguarded by Stryke now returned, new vaults opened, and a strategic focus on maximizing capital efficiency, we look forward to delivering enhanced opportunities for our community. We will continue to provide updates on compensation, campaign developments, and any further improvements to ensure the best possible experience for all users.