One of the interesting developments I've been observing in the market is @bzxHQ's recovery path

They suffered a painful exploit earlier this year, but have put out a plan to reconstitute the network and increase user incentives to support the network https://bzx.network/blog/ieth-buyback

1/ bZx was exploited earlier this year leaving a deficit of 11k ETH or 5-6k ETH when considering the collateral left by the attacker

Since then, the protocol was shut down and the team has been working on a recovery plan & developing a safer V2

2/ In order to fill the ETH hole, they launched a program where bZx ETH can be converted to a vesting bZx token (vBZRX)

They vest over a long time - 4 years, but can accrue fees and participate in governance

3/ The rate at which iETH can currently be converted is at 1 vBZRX = 0.0002 ETH

This is around a ~80% discount from the market price of unlocked BZRX which is trading at 0.0009 ETH

4/ But what is the value of vBZRX relative to BZRX? It depends on each individuals cost of capital.

Here's a back of the envelope exercise with a few discount rates:

5/ Depending on how high you believe the discount rate should be you could consider the current conversion rate to be either fair to pretty favorably discounted

The % circulating supply of BZRX is pretty low so I'd probably lean towards a higher discount rate if I held iETH

6/ So essentially the bZx team is offering iETH holders an opportunity to become psuedo-shareholders of the protocol at a fair to attractive price.

So far 2.1k iETH has been collected from the program which means that ~30-40% of the deficit has been filled.

7/ It looks like the team will be redirecting future fees to reconstituting the iETH pool, so those that don't convert MAY have an opportunity to just withdraw in the future but no idea how long that could take

Conversion choice depends on how you think BZRX performs via ETH

8/ This is similar to if an exchange got hacked & was insolvent and offered users to buy locked exchange tokens (BNB, LEO, HT, etc.) at a steep discount.

Will be interesting to see if the team can pull it off