Great idea. Tobes, can you help me organize this?
Sure, based off the spread sheet answers and based off what we know so far, there seems to be fairly close to a consensus as far as how this plan will go, with some minor derivations.
1.) Harmony Team is going to start including AAVE in the recovery process
So based off this we need to find out if Harmony Team would either a.) Proceed with a complete deposit of the 54.47M ONE or b.) Complete partial deposits either as its own entity and through separate tranches, or will they have the deposits be done through R1 and included in the R1 tranches or “rounds.”
2.) If Harmony Team is going to do multiple tranches over time, we should try and establish an approx amount per deposit, and/or timeline for deposits.
This method will definitely have some issues, such as time it takes, and also availability of liquidity for user withdrawals from AAVE, ie if only 1M is deposited, only 1M can be pulled out, is there a fair/equitable way to make sure the amount is divided each round between investors.
3.) If Harmony elects tranches, we should hold a vote on AAVE to see if they would be willing to deposit all or partial 50%? Liquidity to speed up the process, and AAVE could ask to be reimbursed by Harmony, they can also Sell the depegged assets (% based off deposit amount) back to Harmony either at a depreciated value or for full value once the repegging process is completed.
Another option for AAVE would be instead of depositing liquidity, they could create an exchange for aONE to AAVE, and the aONE holders would become AAVE holders, the only question with this decision would be which blockchain the exchange would take place on.
This is my proposal, its has a few options that need to be decided upon, but fairly linear in its logic.
The only other proposal I’m aware of is from bdglabs ARC: Harmony Recovery - #153 by bgdlabs
Tobes, later this week, I’ll list out all 13-15 suggestions objectively, without giving any feedback or opinion to start. This way, we can refer to each one by its number.
However, I just have to find some free time after work and manage my parental and husband duties. Please give me until the end of this week to organize everything.
I like this proposal, the only thing I’m not sure about is the fair/proportional release of ONE. I doubt it would be easy to implement something like that, unless the pools already have that functionality. We can just have it on a first come, first serve basis, since one can’t withdraw more than one’s owed either way. And if the slow/unlucky ones have to wait a few more weeks/months, that’s nothing compared almost a year we’ve waited until this point.
AAVE does need to 100% prevent all other functionality other than ONE deposits and withdrawals, to avoid further issues.
I personnally believe that a fair mecanism MUST be implemented. Otherwise 99% of blocked users will end up not being able to withdraw anything before monthes/ years? As you said, we have already waited a year so it would be nice to see some gradual unlocking for all users. This would secure the recovery plan from the bots emptying everything in seconds as soon as some ONE are injected.
Well, the reason why I’m saying this, is because I’m pretty sure 90% of affected users are not following this thread and won’t even know their ONE is unblocked now. I believe most just gave up hope getting their ONE out.
Thank you for your patience. I have organized all 14 submissions by using the Google Form data and the AAVE form submissions. I transformed the data into a numbered bullet list format and then removed five questions (Affected by the bridge incident, Holds ONE or bridged 1Assets in Aave, Value of bridged 1Assets in Aave, Wallet address of affected bridged assets, and Willing to join a Telegram channel) along with their respective answers. This was done to focus on finding practical solutions to the problem.
Next, I requested ChatGPT to summarize each set of submission data and come up with a solution to the issue of bad debt that is stuck in the AAVE protocol. That summary is at the bottom of each submission.
Biggest challenges facing Aave and Harmony: Developing a fair plan to unite the defi community in order to reimburse the bad debt.
Role for Harmony: Open communication and transparency with the affected users of the Harmony protocol. Liquidity directed from staking and other avenues should be utilized to make users whole.
Role for Aave: Percentages of Aave revenue should be utilized to pay off the bad debt over the course of 12-24 months.
Practical solution: Robust percentages of both Harmony and Aave fees/revenue should be utilized to recover the bad debt, regardless of whale governance manipulation.
Suggestions for Aave and Harmony: Robust percentages of revenue from both Aave and Harmony allocated to publicly-visible (on-chain) escrow to ensure full transparency and penalties in the form of siphoning liquidity/fees/revenue from other chains on Aave. Staking revenues and liquidity on Harmony should be robustly allocated to quickly resolve the bad debt at a ratio determined by on-chain activity.
ChatGPT Summary: Aave and Harmony must develop a fair, united plan to reimburse bad debt, using robust percentages of their revenues over 12-24 months. They should allocate funds to on-chain escrow for transparency, while leveraging Harmony’s staking and liquidity revenues to efficiently resolve the debt issue. Open communication is crucial.
Biggest challenges facing Aave and Harmony: AAVE’s decentralized leadership/voting structure
Role for Harmony: Should work to buy back bed debt
Role for Aave: Should work to buy back bad debt
Practical solution: Either Harmony or AAVE could purchase/deposit ONE onto Harmony AAVE allowing aONE holders to withdraw their ONE. Or create an exchange or a liquidity pool on an existing exchange to swap ONE for aONE. Harmony and R1 are restoring the peg by buying back deppeged assets, they could agree to purchase deppeged assets on AAVE Harmony either at pegged value or a depreciated value.
Suggestions for Aave and Harmony: A proposal needs to be generated that is agreeable to AAVE Harmony asset holders and Harmony, that proposal then needs to be submitted to the AAVE community for a vote.
ChatGPT Summary: To resolve the bad debt issue in AAVE, Harmony and Aave should collaborate to buy back bad debt and develop an agreeable proposal for asset holders. This could involve creating an exchange or liquidity pool to swap aONE for ONE or repurchasing assets at pegged/depreciated values.
Biggest challenges facing Aave and Harmony: Communication between AAVE and harmony to propose a solution to the affected users.
Role for Harmony: Reimburse 50/50 with AAVE
Role for Aave: Reimburse 50/50 with AAVE
Practical solution: Buying back gradually aWONE from AAVE users. It could be a common pool of ONE filled by AAVE and Harmony monthly, with a limit on aWONE => ONE conversion per user per month. This way, AAVE and Harmony will become owner of the lending on AAVE protocol. If Harmony recovery plan succeed for depegged assets, there would not be any bad debts left on AAVE and both AAVE and Harmony will be able to recover the funds withdrawing their aWONE to ONE through the protocol.
Suggestions for Aave and Harmony: Help getting a vote approved on AAVE by borrowing AAVE and contributing to the vote.
ChatGPT Summary: A potential solution for the bad debt in AAVE involves Aave and Harmony reimbursing users 50/50 and buying back aWONE gradually. A common pool of ONE could be filled by both parties monthly, with conversion limits per user. Ensuring depegged assets recovery, all debts would be resolved, benefiting both platforms. Obtaining vote approval on AAVE is crucial for success.
Biggest challenges facing Aave and Harmony: Harmony Core Team, non-committal to address issues, and don’t keep their word.
Role for Harmony: Harmony is making disbursements of ONE to recovery entities to buy/burn bridged assets. Why are they not providing ONE disbursements to reimburse Aave aONE holders over time too?
Role for Aave: Receive ONE disbursements from Harmony to reimburse Aave aONE holders, and work out a mechanism to deploy these to affected users in exchange for their aONE tokens.
Practical solution: Harmony to reimburse Aave aONE holders over time through ONE disbursements. This can be from staking rewards from ONE Treasury funds being staked, to avoid additional inflation.
Suggestions for Aave and Harmony: Harmony had an incentive pool of harmony being provided to ONE depositors in Aave when the platform was first launched. As soon as the hack happened this was taken away…where is that money now? Why can’t it be used as part of a reimbursement plan for aONE holders?
ChatGPT Summary: In response to the bad debt issue in AAVE, users suggest that Harmony should provide ONE disbursements to reimburse Aave aONE holders over time, possibly using staking rewards or repurposing withdrawn incentive pool funds. Aave’s role would involve distributing these funds to affected users in exchange for their aONE tokens.
Biggest challenges facing Aave and Harmony: It is taking too slow to complete the recovery process
Role for Harmony: Thought leadership
Role for Aave: Technical and soft loans to harmony
Practical solution: Harmony should take commercial loan to complete the process quickly
Suggestions for Aave and Harmony: They should find optimal solution including the GHO loan and integration
ChatGPT Summary: The primary challenge is the slow recovery process. Harmony should provide thought leadership and Aave should offer technical and financial support. A potential solution includes Harmony obtaining a commercial loan for expedited recovery. Both parties should collaborate on optimal solutions, including GHO loans and further integration.
Biggest challenges facing Aave and Harmony: (Not provided)
Role for Harmony: (Not provided)
Role for Aave: Should be repurchased or compensated in an alternative currency because of the bond
Practical solution: I’m willing to be compensated in AAVE currency equivalent to the bond price.
Suggestions for Aave and Harmony: I can’t say because I don’t know the relationship between the two companies.
ChatGPT Summary: To address the bad debt issue in AAVE, it is suggested that Aave compensate users by repurchasing their assets or providing alternative currency equivalent to the bond price. AAVE tokens can be used for compensation, ensuring users’ assets are no longer locked in the protocol. Cooperation between Aave and Harmony remains crucial.
Biggest challenges facing Aave and Harmony: Getting the money back to holders in a reasonable amount of time
Role for Harmony: 100% I think it was called the “Harmony Bridge,” right?
Role for Aave: Unsure, I don’t think they designed the bridge, did they?
Practical solution: Make sure the recovery funds are handed out in some equal fashion. At least with Harmony I suspect that there are insiders knowing when the burn funds are available before the whole community does and the burn funds are gone before regular users even are aware that there are new funds in the burn accounts.
Suggestions for Aave and Harmony: No idea
ChatGPT Summary: To resolve the bad debt issue, Aave and Harmony must collaborate to expedite asset recovery. Harmony should manage its “Harmony Bridge” more transparently, while Aave addresses its role in the problem. Ensure equal distribution of recovery funds, preventing insider advantages and promoting fairness for all users.
Biggest challenges facing Aave and Harmony: Lost trust in core developers, who kept private key on a personal laptop.
Role for Harmony: Re-peg 100% of lost tokens and refund community.
Role for Aave: Major
Practical solution: Make the core developers take the financial responsibility for the mess they created.
Suggestions for Aave and Harmony: On the bull market, reinvest all funds back to Harmony. Watch out for scammers on Harmony: ViberSwap, CobraSwap, Comfy.Money.
ChatGPT Summary: To address the bad debt issue in AAVE, regain user trust by holding core developers accountable for the security lapse. Collaborate with Harmony to re-peg lost tokens and refund users. Adopt stringent security measures, reinvest in Harmony, and be vigilant against scams on the platform.
Role for Harmony: I’m really inexperienced when it comes to crypto, so with the depeg I’ve been letting my money just sit, and really want to move it to a safer spot.
Role for Aave: This I am not totally sure, but whatever help I can have the better.
Practical solution: I just want to bridge my 1busd to dai on eth, but I have no clue how and cannot find anything to help me.
Suggestions for Aave and Harmony: Communication
ChatGPT Summary: Harmony and Aave should work together to develop a user-friendly solution for unlocking frozen assets. This includes creating an easy-to-use bridge for converting affected assets, offering guidance for inexperienced users, and prioritizing transparent communication between both platforms to ensure a smooth resolution of the bad debt issue.
Biggest challenges facing Aave and Harmony: The user believes in Harmony
Role for Harmony: First, Harmony can collaborate with the Aave team to address the technical issues that have caused delays and inconvenience in processing debts on their network. This may include system audits and necessary protocol updates.
Role for Aave: I believe that Aave also has a role to play in helping to recover this bad debt. They could work with Harmony to identify and address any technical issues that may be causing delays or other problems in the debt processing.
Practical solution: If willing to pay off the bad debt, the payment will be staked in stable coins. Then, the debtor will receive rewards from staking for several years.
Suggestions for Aave and Harmony: First, Harmony can collaborate with the Aave team to address the technical issues that have caused delays and inconvenience in processing debts on their network.
ChatGPT Summary: A collaborative approach between Aave and Harmony is essential to tackle bad debt issues. Solutions include addressing technical challenges, conducting audits, updating protocols, and staking payments in stable coins for debt recovery, allowing affected users to earn rewards from staking over time.
Biggest challenges facing Aave and Harmony: Credibility
Role for Harmony: Burning rewards
Role for Aave: Burning rewards
Practical solution: Staking or launching/working with new projects/creating different pools
Suggestions for Aave and Harmony: Open talks
ChatGPT Summary: To address the bad debt issue in AAVE, Aave and Harmony must improve credibility and collaborate openly. Both parties should consider burning rewards and create alternative solutions such as staking, launching new projects, or establishing different pools to expedite the recovery and release of locked assets.
Biggest challenges facing Aave and Harmony: Lack of character in taking responsibility, they want to profit from the allocated values, but they don’t want to take responsibility for the fatalities that may occur as was the Hack.
Role for Harmony: Take responsibility and pay people back who have nothing to do with the hack, the mistake was HamornyONE and AAVE and not the people who staked their funds.
Role for Aave: Have character and Assume responsibility for what happened, not hide behind excuses. It was a risk that AAVE knew it would take, and did not want to take responsibility.
Practical solution: Take the value of the emergency funds that you claim to have and recover the payment, with this you will bring confidence and demonstrate commitment and character.
Suggestions for Aave and Harmony: Simple, if there are funds for investments, why not use them to recover the payment and investor confidence?
ChatGPT Summary: The biggest challenges facing Aave and Harmony in regards to bad debt recovery are a lack of responsibility and character. Harmony should take responsibility for the depeg, and Aave should assume responsibility for the bad debt. A practical solution would be to use emergency funds to recover the payment and restore investor confidence. Aave and Harmony should work together to find a solution that benefits both ecosystems.
Biggest challenges facing Aave and Harmony: Lack of care from Aave and Harmony leadership
Role for Harmony: Harmony is responsible for the depeg, not the bad debt. They should focus on recovering 1Assets for people.
Role for Aave: Aave is responsible for ONE and Link bad debt, they should fully recover all who staked ONE and Link into Aave.
Practical solution: I wrote this post - ARC: Harmony Recovery - #123 by ThunderingTias
I think that should be the rough plan for recovery.
Suggestions for Aave and Harmony: Harmony can help facilitate Aave’s compensation of bad debt, for example provide OTC liquidity for Aave to buy ONE tokens to distribute to affected users.
ChatGPT Summary: The bad debt stuck in the AAVE protocol presents a challenge due to lack of care from leadership in Aave and Harmony. Aave should fully recover those affected by ONE and Link bad debt, while Harmony should recover depegged 1Assets. Harmony can help by facilitating Aave’s compensation through OTC liquidity to distribute ONE tokens to affected users.
Submission 14- AAVE
Timestamp: April 27, 2023, 2:48 PM
Currently, the Harmony recovery program seems to be progressing quite slowly, with less than 10% of the assets depegged burned after ~10 months (~2% of depegged assets burned by the recovery exchange 1 and ~4% of depegged assets burned by modulo 1), so we think it makes sense to consider options targeting a partial recovery.
The objectives of the following technical solution are:
Provide a mechanism for Recovery One (or anybody else) to provide liquidity of ONE and LINK to the affected users.
Reduce or completely remove the outstanding debt on the Aave v3 Harmony pool.
The solution: decaying oracle
The current Oracle price for depegged assets, following how Chainlink works, is based on the global market price of these assets, not the one applying to Harmony-bridged ones.
Pricing of depegged assets is impossible, because:
If you believe they will re-peg they should be priced at current oracle price minus a discount for the recovery time.
If you believe they won’t re-peg, they should be priced at 0.
There’s no “correct” way to approach this pricing problem, but it is possible to use the oracle as a mechanism for partial recovery.
We propose to introduce a decaying oracle that will continuously discount the price of depegged assets based on time, from the current Chainlink price, till a minimum value (e.g. 5% of the current price) after a predefined amount of time (e.g. 3/6/12 months). During that period, any address will have the option to liquidate these assets at an ever-growing discount. The repayments injected by liquidations will provide holders of ONE and LINK liquidity to withdraw.
The currently liquidatable users can be found on the chaos-labs risk dashboard 5.
This solution should align perfectly with the ethos of the Recovery One Team: if believing in a re-peg, they should have a clear incentive to liquidate as early as possible, as the debt consists mostly of wONE tokens. Also, by liquidating depegged assets with wONE, the Recovery One Team will remove depegged assets from the market, while at the same time providing wONE liquidity for hack victims.
Important to highlight that the mechanism of Aave liquidation itself assures really optimal compensation to affected users, as they receive “directly” the liquidity via the aTokens, without any secondary market mechanism like the one used on the general Harmony recovery.
Liquidating only at a higher discount and later will implicitly price the confidence in the recovery by the recovery team.
The liquidation bonus of all collaterals should be set to 0 as the discount on the oracle price already acts as a liquidation bonus.
Even if rates are minimal at the moment, the aave-v3-core now provides a zero interest rate strategy that should replace the existing interest rates of all assets on the harmony network.
The Aave DAO Harmony treasury currently holds around 50k USD in assets. The depegged assets should be burned, following the recovery program. These ~2m aONE and ~700 aLINK should be considered a loss and will never be withdrawn.
The Harmony team stopped the liquidity mining shortly after the hack, as incentives didn’t make sense. They also pulled the funds though, which essentially means users can no longer claim their previously promised rewards. Therefore we think it would be reasonable for them or the Recovery One Team to compensate those users, as technically those rewards belong to them.
At the current moment, and without good certainty on the Harmony recovery program, we don’t think any new deployment of Aave should be considered, as there could be technical risks.
It is important to highlight that even if we can help with the technicalities of this proposal, same as with other cases like asset listings, the proposal (Snapshot in this case) should come from the Harmony/Recovery One team or community members.
ChatGPT Summary: The Harmony recovery program has progressed slowly, recovering less than 10% of the assets depegged after 10 months. To partially recover the outstanding debt on the Aave v3 Harmony pool, a decaying oracle mechanism is proposed. This will continuously discount the price of depegged assets based on time until a minimum value is reached. Users can liquidate assets at an ever-growing discount, with repayments providing liquidity for ONE and LINK. Liquidating early will provide optimal compensation to affected users, while liquidating later will price the recovery team’s confidence.
The 14 submissions can be organized thematically into several groups:
Group 1: Collaboration between Aave and Harmony
- Submission 1: Develop a united plan to reimburse bad debt using revenue allocation and on-chain escrow
- Submission 2: Collaborate to buy back bad debt and develop a proposal for asset holders
- Submission 3: Reimburse users 50/50 and buy back aWONE gradually with a common pool of ONE
- Submission 4: Provide ONE disbursements to reimburse aONE holders, with Aave distributing funds
- Submission 5: Collaborate on optimal solutions, including GHO loans and further integration
- Submission 6: Compensate users by repurchasing assets or providing alternative currency, using AAVE tokens for compensation
- Submission 7: Collaborate to expedite asset recovery and ensure equal distribution of recovery funds
Group 2: Technical Solutions
- Submission 8: Hold core developers accountable for security and adopt stringent measures
- Submission 9: Develop a user-friendly solution for unlocking frozen assets
- Submission 10: Address technical challenges, conduct audits, update protocols, and use stable coins for debt recovery
Group 3: Responsibility and Credibility
- Submission 11: Improve credibility and collaborate openly by burning rewards and creating alternative solutions
- Submission 12: Use emergency funds to recover payment and restore investor confidence, and work together to find a solution that benefits both ecosystems
- Submission 13: Recover affected users, with Aave recovering ONE and Link bad debt and Harmony recovering depegged 1Assets
Group 4: Decaying Oracle Mechanism
- Submission 14: Propose a decaying oracle mechanism to partially recover outstanding debt on the Aave v3 Harmony pool
A concise solution for each group.
Group 1: Collaboration between Aave and Harmony
Aave and Harmony should collaborate to develop a united plan to reimburse bad debt and compensate users using a common pool of ONE. This plan should include on-chain escrow for transparency and equal distribution of recovery funds, ensuring a fair solution for all affected users.
Group 2: Technical Solutions
To address the bad debt issue in AAVE, technical solutions such as holding developers accountable, conducting audits, and updating protocols should be implemented. In addition, a united plan to reimburse bad debt using revenue allocation and on-chain escrow should be developed, along with a user-friendly solution for unlocking frozen assets. The use of stable coins for debt recovery can also be helpful.
Group 3: Responsibility and Credibility
To improve responsibility and credibility, Aave and Harmony should develop a united plan to reimburse bad debt using revenue allocation and on-chain escrow. They should also improve transparency by collaborating openly, burning rewards, and using emergency funds to restore investor confidence. Finally, they should recover affected users by addressing specific types of bad debt.
Group 4: Decaying Oracle Mechanism
A decaying oracle mechanism to partially recover the outstanding debt on the Aave v3 Harmony pool.
I welcome everyone to join the discussion and provide feedback.
Thank you for looking through these!
Not sure why we need separate “groups” of submissions… They sound more like steps - first fix the current issue, then “address technical challenges, conduct audits, update protocols” and lastly that will “improve credibility” and “restore investor confidence”
This certainly looks like a lot of work, but honestly we need to decide a concrete solution and execute it, instead of going for round 5 of “sourcing ideas”. Can we please have one (or multiple) representative of AAVE meet you (or someone else) as a representative of Recovery One and decide on a solution?
AAVE doesn’t really have representatives, because of decentralization.
Hi, I’ve only just come across this thread… I’ve been sitting on a few assets that are stuck on the harmony network. Unfortunately, I had taken some time out of crypto & didn’t know about the hack until about 4 months afterward. I have some 1WBTC, 1DIA, BUSD, bscBUSD & ONE. What is the process for getting access to them & is there any chance of them being worth any more than the de-pegged value?
This week, R1 will narrow down the ideas. We have some good ones from the community and the AAVE team. We will strive to find a middle ground that accommodates AAVE, Harmony, and the communities, and then propose a vote here.
Thanks my friend, hope can see propose to vote soon !
Thank you to the Aave and Harmony communities for your feedback and solutions. After reviewing 14 proposals (ARC: Harmony Recovery - #169 by mbarret3), we have crafted a solution that incorporates many of your ideas and aligns with the recovery efforts. Additionally, we have considered Tranquil Finance’s strategy, which involved burning 1Assets and eliminating “bad debt” from their protocol.
We encourage the Harmony and Aave communities, along with their respective teams, to provide feedback and contribute to the enhancement of this solution. We aim to transition to a governance vote on a final resolution by the end of June.
The bad debt, stemming from the hack on the Aave protocol on the Harmony blockchain, resulted in significant fund loss for numerous users. This bad debt is currently inhibiting users from accessing their funds.
The initial step involves the implementation of the decaying oracle mechanism as suggested in Proposal 14. This mechanism allows users to liquidate these depegged assets at a progressively diminishing value. By encouraging the early liquidation of assets, this approach expedites the removal of depegged assets from Aave. As the debt is primarily comprised of wONE tokens, liquidating depegged assets using wONE tokens would withdraw those assets from the market while simultaneously providing wONE liquidity to the victims of the hack. Harmony could contribute 10% of the necessary funds for this recovery effort, and Aave could match this with another 10%, enabling affected users to recoup 20% of the pre-hack amount. Any remaining “bad debt” would be evenly split between Harmony and Aave.
Note: The depreciated assets held by the Aave DAO Harmony treasury, approximately 2m aONE and 700 aLINK, should be considered a loss and incorporated as part of the 10% contributed by Aave.
After final revisions, this recovery plan should be put up for a governance vote. If a final plan receives approval, the recovery process should span a period of four years. Nevertheless, this timeline could be extended or shortened based on market conditions.
The expected outcome of the recovery plan is to compensate users affected by the Aave protocol hack on the Harmony blockchain. This compensation would facilitate user access to their funds and reinstate their financial security. The recovery plan also aims to reestablish confidence in the Aave protocol and the Harmony blockchain.
Final Note: This effort is being carried out in good faith. This document is a draft version and we anticipate modifications and contributions from all stakeholders.
Thanks. We are trying to help where we can. Cheers.
Thanks for typing this up. I’m a bit confused with the statement above… If each Aave and Harmony contribute 10%, and then evenly split, wouldn’t that mean they just split the bad debt 50/50? Why phrase it like this, I must be misunderstanding something here. Or do you mean that 10% is up for immediate contribution and the other 40% to be contributed over time? I’m confused.
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.
I see, thank you for explaining that. Would you please elaborate on how this “decaying oracle mechanism” works? Specifically after Aave and Harmony provide 10% each, where would aONE come from after that? Does “decaying” part mean that it would be gradually distributed with amounts decreasing/decaying over time?
20% of the amount of money they had before the hack
How do we get the other 80% or are you just fucking us all?