Refund gas fees for signer setup fails

Hi all, I’m noticing a high amount of signer setup fails over the past few months which is a big negative for the tbtc bridge as it decreases trust in the product.

This proposal is similar to (Proposal: Amendment to reimburse failed mint tx fees) however I am proposing that only signer setups that fail get compensated as technically they have done absolutely nothing wrong.

In addition, would be great to hear about how this might be mitigated in V2. Can there be a voting system where nodes get booted from the sortino pool? Scoring? My understanding is that currently the punishment for having defective node is extremely minor (e.g. on failing to setup on a 5btc keep, the punishment is 0.021 eth VS gas fees of sometimes 0.2 eth spent by depositor) when actually it should be much more punitive.

I am proposing that every depositor who’s keep ended in a ‘Signer setup failed’ state, should have a one-time full reimbursement either in eth or in KEEP as of a given snapshot date. I strongly believe that this gesture of goodwill would go a long way to appease depositors who have lost a lot of money using the tbtc bridge through no fall of their own.

Thanks for listening,


V1 requires 3 of 3 signers to act correctly, if one of the signers fails to submit anything on setup the setup will fail.

V2 increases the number of signers in a Keep so only 51 of 100 signers will be required to take action which greatly reduces the risks

In the early discussions around the T token design I proposed something similar and there where some discussions around allocating tokens towards this, the consensus at the time was that it was part of the risks / rewards of making use of an alpha defi product.

Part of the challenge with reimbursements is where does the line get drawn? Should the operators who did respond correctly but got punished for the failure be reimbursed as well? What about operators who got liquidated due to other operators errors? What about operators who where forced to bear the cost of closing under collatoralized keeps to avoid liquidation? What about signers who got liquidated in heavily overcollateralized keeps or who have bitcoin they cant recover from liquidations due to not being able to find the other signers?

I think the line should be where the user is not getting compensated for the potential loss. Operators have been handsomely paid in KEEP rewards (which have just been extended through March) so any losses are more than covered. Users who can spend easily $1k+ to mint any amount of tbtc to then get stuck at the signer setup stage are not getting compensated for this whatsoever and the faulty operators are barely getting punished so effectively blocking future minting.

I’d argue that right now that’s acting as a major deterrent for minting yet operators are still getting rewarded. If you compare the amount that this would cost (guessing ˜50k KEEP) versus the humongous amounts of KEEP provided during PfK it’s clearly a small amount to pay in order to appease unfairly wronged early users.

Hello, I got a “signer setup failed” that cost me 0.06 + 0.15 ETH gas. It would be nice to have a compensation.
Additionnaly I can’t mint another deposit now because of “not enough operator in pool”