I am not aave holder so from what i understand it makes me powerless to create any governance vote isnt it?
First step would be to put some numbers on the current situation.
What would be the current state of aave harmony if suddenly, the oracle was changed to reflect real bridged coins price? How much bad debt would there be because of the exploit?
Once we have this info, we can plan something to recover. Do you know who can provide such infos?
First idea i have in mind could be a contribution from both harmony and aave, listing the new bridged coins following the opening of layerzero bridge and redirect a part of the fees to reimburse the rest of the bad debt over time.
Well there is the Aave companies, they probably have some clever people that could figure it out.
But i think they are already several (same) posts regarding harmonry and there could already be the information you are looking for.
Would be really great to find a solution but in the moment it looks like harmony say itās aave fault, and here the community donāt care except their reputation. I mean if the interested rate would be lowered as it was suggested in here but nothing happened after freezing.
If the oracle of harmony would be used there was even the possibility to liquidate some stuff, especially the LINK. But all we heard before was recovery ONE and team are in communication and now we read
"Weāve tried working with the community representatives at AAVE and with the core team, there doesnāt seem to be a middle ground. It is difficult to work with AAVE due to their decentralized nature and the fact that the community hasnāt made a proposal to negotiate on.
As mentioned above, a large amount of money was lost on the AAVE protocol the day after the hack."
But I suspect itās closer to about 1.1M USD with just the totals of just ONE and LINK borrowed. The two assets that were unaffected by the bridge hack, and thus subsequently borrowed against with devalued assets.
Would lower that number to around 900k, but LINK is growing dailyā¦
Here the top ten ONE borrower and the top three LINK, this are $885ā605 negative debt in the moment
How about starting by listing the new horizon layer zero bridge coins, collect the fees gradually in order to reimburse this bad debt?
Then we can progress on a potential harmony and/or aave contribution to recover faster. Just a note that if a full or partial bailout is proposed, it would be smart to do it with the current market condition, which would be much cheaper than waiting for the market to recover.
In any case, harmony aave canāt stay in this state for ever. This will start making noise on social media and affect aave reputation especially considering that:
safe module is displayed on harmony aave which leads users to think they are covered in case of issues such as this exploit
apy was displaying 1014% for at least three weeks after the exploit which lead new users to deposit on aave to be at the end exit liquidities for others without realizing it
most of the bad debt was acquired the day after the hack
Hereās the most up to date info on the recovery process and how it concerns AAVE. The information is a recap of where we are at as well as my personal recommendations to the AAVE community:
Ignoring this issue isnāt going to make it go away. Again. Can we get a vote to either, participate in the current recovery process, or find a different method to rectify this?
Who has access to the depegged āCollateralā assets?
Why havenāt the assets already been liquidated?
How do we gain access to the depegged āCollateralā assets?
AAVE seems to not claim any responsibility for the fate of Its lenders on Harmony, then why do they retain control of the depegged assets? The assets should be divided up between the lenders who have lost their money.
