ARC: Aave and Harmony Joint Recovery Plan Following the Harmony Blockchain Hack

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Mbarret3 proposed a recovery plan for the Harmony blockchain hack affecting Aave users, involving a recovery fund, a decaying oracle mechanism, and splitting remaining bad debt. The plan, estimated to take four years, is subject to community sentiment via a Snapshot Poll and an Aave Improvement Proposal (AIP) vote, with potential acceleration through a collaboration with the new Emissions DAO.

The discussion revolves around a recovery plan proposed by Mbarret3 in response to a significant hack on the Harmony blockchain, which resulted in substantial losses for Aave users. The plan includes the creation of a recovery fund, the implementation of a decaying oracle mechanism, and the equitable split of any remaining "bad debt". The recovery fund, funded by Harmony and Aave, would allow affected users to recoup 20% of their pre-hack balance. The decaying oracle mechanism encourages the early liquidation of depegged assets at progressively diminishing values, starting at a recovery rate of 20%. Any remaining bad debt would be split equally between Harmony and Aave. The recovery process is estimated to take about four years, but this timeline can be adjusted based on market conditions and the progress of the recovery efforts.

Mbarret3 also proposed a Snapshot Poll to gauge community sentiment and preferences, preparing the Aave Improvement Proposal (AIP) based on the rough consensus gathered via snapshot, and submitting the AIP to the protocol for a governance vote. They raised additional questions about the administration and distribution of the recovery fund, the updating of the Oracle, and the pace of the oracle decay each month. Tattooedk asked if the assets they still hold will be recovered for the value at the time of the hack. Mbarret3, who has been actively involved in the recovery process of depegged assets and strengthening the Harmony ecosystem, mentioned an upcoming collaboration with the new Emissions DAO, which they believe will speed up the recovery process.

In conclusion, the community is actively working on a recovery plan following a significant hack, with a focus on creating a recovery fund, implementing a decaying oracle mechanism, and splitting any remaining bad debt. The plan is still under discussion and subject to community voting.

Posted 5 months ago

Last reply 3 months ago

Summary updated 2 months ago

Last updated 05/12 01:14