Here is a more detailed explanation:
-
Harmony could contribute 10% of the necessary funds for this recovery effort. This means that Harmony would provide 10% of the total amount of money needed to reimburse users who lost funds in the hack, the reimbursement rate would start at 10% at the decaying oracle implementation.
-
Aave could match this with another 10%. This means that Aave would provide another 10% of the total amount of money needed to reimburse users who lost funds in the hack, the reimbursement rate would start at 10% at the decaying oracle implementation.
-
This would enable affected users to recoup 20% of the pre-hack amount. This means that users who lost funds in the hack would be able to get back 20% of the amount of money they had before the hack, the reimbursement rate would start at 10% at the decaying oracle implementation.
In total, this proposal would mean that users who lost funds in the hack would be able to get back 20% of the amount of money they had before the hack at the start of the decaying oracle implementation.
Any remaining “bad debt” would be evenly split between Harmony and Aave. This means that any “bad debt” that remains on Aave after the decaying oracle mechanism would be split evenly between Harmony and Aave. (It is tough to get 100% participation. It is a goal, but also an ideal).
I think Aave can find ways to get close to 100% participation.