Proposal 1 - Treasury funds are LPd into pools

The general idea is for the treasury to asymmetrically contribute to a pool so the ratio of asset:RUNE generates an LP "price" that mirrors the LP's token price on other exchanges. Calculations must include the pending transactions. The ETH pools needs ETH so the treasury would acquire and stake ETH as an example. In other pools, where the LP need RUNE to correct its price, the treasury would deposit RUNE. In return the treasury would receive shares in all the pools in made contributions to. Targeting proper asset:RUNE ratios for the affected LPs would get the current economic state of THORChain close-enough to real-world values that the community's swapping/arbing can return THORChain to a useable state.

Pros

• Existing LPs can stay in the system
• The treasury would own the LP positions of the funds they deposited into the pools, earning it yield over time
• It's pretty "simple"

Cons

• A significant amount of Treasury assets won't be available for other uses
• LP owners must rely on ILP to make the "whole"
• Many LP owners may be distressed about the 100-day wait and the failure to earn more than the hodl rate on the funds deposited into the affected LPs

Proposal 2 - Treasury funds are donated into pools

The idea is to create an LP which would reflect what the remaining LP investors would have had if all that happened was the prices of LP asset and RUNE had changed. The specific proposal is for the ETH pool. One idea is to use Proposal 1 for pools that need RUNE and Proposal 2 for pools where the treasury needs to acquire the LP token.

The specifics for the ETH LP would work like this:

• Count the ETH at the time of the attack held by LP holders who remained in the ETH LP throughout the ordeal.
• Calculate a beginning LP $value such that RUNE $value = ETH $value of the counted ETH (so LP $ value = 2X ETH $value).
• Price adjust ETH half and RUNE half of the LP from the time of attack to the time of reconstituting the new pool.
• Sum the ETH and RUNE halves to calculate the $value of the new pool.
• Have the TC Treasury DONATE and amount of ETH and RUNE so the LP balances equal what is calculated and the ETH $value and RUNE $value are roughly equal (and also offset the consequence of pending transactions).
• Scenarios where the donate amount is 90% or 80% of the calculate funding need are potential considerations.

Pros