TL;DR Everything is safe. All new strategies will be protected. Original eight strategies (minus PunkStrategy which is unaffected) have slight mechanical twist that lends itself to SquiggleStrategy being functionally reworked as 'Day One AB'. Yesterday we found a bug in the 8 deployed NFTStrategy's (not including PunkStrategy which is unaffected). Essentially, there is a complex way of swapping out an NFT owned by the protocol with a different one on the same contract. For all collections other than Squiggles, this seems fine at first if you value the floor NFTs the same. The issue arises when the protocol does not know the NFTs have been switched. So if Bored Ape #2516 was listed at 15e and swapped with Bored Ape #2517 (#2516 is no longer held in the protocol and #2517 is in the protocol), the ape the protocol holds is not listed for sale essentially "bricking" it. This is where it gets interesting. Technically, we can also swap back the NFT into the protocol making it for sale again at the intended price, and taking out one of the "bricked" NFTs. This means at any point in the future, the exploited NFT can be sold by the protocol as intended for the listing price. This essentially creates a sort of "call option" on the NFT. If floor prices ever raise above the listing price a rational trader will swap the exploited NFT back to the protocol, buy the NFT themselves, and take the difference between the price and the current floor. This would release the funds and continue the buy and burn. The only downside we could find from this is if someone finds their "Forever NFT" and wants to hold on this specific token, the ETH will remain in there until then and may never unlock. As for the SquiggleStrategy specifically, this new mechanic means it's now a "Day One AB" strategy, with all 11,012 NFTs on that contract essentially being treated equally. We think this is interesting for two reasons: First, the "Day One" AB trio -- Squiggles (Snowfro), Genesis (DCA), and Construction Token (Jeff Davis) is already a set that many collectors have been collecting, given these three projects launched simultaneously on the first day AB went live. Second, the value of the other two non-Squiggle collections are *much* smaller edition sizes (512 and 500 unique editions respectively), and are only ~30% off the value of an individual Squiggle (10,000 unique editions). More importantly, funds in the protocol are safe. The ERC20 tokens themselves have no issues and the funds will still pool up as intended and buy floors. The ETH held within these NFTs is also safe, albeit can be a delayed release but should eventually make its way back into the LP via buy & burns. These strategy tokens do NOT need to be redeployed. We’ll eventually build a frontend to help users swap the NFTs back (ie. Exercise the call) if they end up with one of the exploited NFTs and help them chug the mechanism along. Future strategy launches are delayed for a few days until we feel the contracts are secure. The 5 planned launches will resume afterwards. Thank you all for the support, and every bump in the road makes us stronger.