Here is my proposal that aims to help victims of the Harmony bridge exploit and hopefully resolves the problem of the Harmony frozen market on AAVE:
- Create detailed snapshot of the current state (current value $2.3m)
- Perform liquidations of all debts vs collateral as it is.
- Show resulting balance (deficit) to Harmony ONE leaders and appeal for them to cover half of it with their funds.
- Compensate the difference from AAVE own funds (fees revenue).
- Open withdrawals for X time.
- After X time announce retirement of AAVE protocol on Harmony chain (optional).
Please comment with any suggestions to improve the process above. I hope this will lead to the vote and positive ending.