# Harmony & Aave: Renewed Proposal for Joint Recovery Effort **URL:** \ **Category:** Governance\ **Created:** [February 12, 2025, 10:24pm UTC](https://governance.aave.com/t/harmony-aave-renewed-proposal-for-joint-recovery-effort/21054 "2025-02-12T22:24:29Z")\ **Posts on this page:** 14\ **Page:** 1
**Author:** ![mbarret3](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/mbarret3/32/3470_2.png) [@mbarret3](https://governance.aave.com/u/mbarret3)\ **Post date:** [February 12, 2025, 10:24pm UTC](https://governance.aave.com/t/harmony-aave-renewed-proposal-for-joint-recovery-effort/21054/1 "2025-02-12T22:24:29Z")
Dear Aave Community, In June 2022, the Harmony Horizon Bridge suffered a significant exploit, leading to substantial losses and impacting Aave’s V3 deployment on the Harmony network. In 2023, Recovery One facilitated a joint recovery proposal, suggesting that both the Harmony community and Aave contribute 10% each to compensate affected users. While this initial proposal did not materialize, ongoing recovery efforts within the Harmony ecosystem have led to significant progress. As of February 2025, through the [HIP30v2 plan](https://blog.harmony.one/p/hip30v2-update-announcement), depegged assets have been systematically burned, resulting in approximately 30% of the compromised assets being removed. Currently, the value of depegged assets stands at approximately $0.20 on the dollar compared to their pre-hack value. Two community-led burn partners, [Recovery One Foundation](https://x.com/recoveryonefdn) and [Modulo](https://x.com/modulo_so), have played a crucial role in facilitating this recovery process. 🔗 [Recovery One’s Blog: Recovery Updates Round-by-Round](https://recoveryonefoundation.medium.com/) 🔗 [Recovery Tracker: Harmony Recovery Tracker](https://chefsoysauce.io/projects/harmony/) ### **Renewed Proposal** Building on 28 months of progress, we propose a renewed collaborative effort: - Harmony Burn Partners Contribution: 20% towards the recovery fund. - Aave Contribution: 20% towards the recovery fund. This combined 40% fund aims to provide substantial compensation to affected users and accelerate the recovery process for those with locked funds on Aave. * * * ### **Previous Discussions & Context** For reference, previous discussions and proposals related to this matter can be found here: - [Harmony Horizon bridge exploit. Consequences to Aave V3 Harmony](https://governance.aave.com/t/harmony-horizon-bridge-exploit-consequences-to-aave-v3-harmony/8614) - [ARC: Harmony Recovery](https://governance.aave.com/t/arc-harmony-recovery/10468) - [ARC: Aave and Harmony Joint Recovery Plan Following the Harmony Blockchain Hack](https://governance.aave.com/t/arc-aave-and-harmony-joint-recovery-plan-following-the-harmony-blockchain-hack/14060) - [Harmony & Aave: Horizon Bridge Hack Solution (Recovery One)](https://governance.aave.com/t/harmony-aave-horizon-bridge-hack-solution-recovery-one/15835) - [[TEMP CHECK] AAVE V3 Harmony Recovery ONE Proposal](https://governance.aave.com/t/temp-check-aave-v3-harmony-recovery-one-proposal/15738) * * * ### **Next Steps** If there is renewed interest within the Aave community, we are ready to help facilitate this joint recovery effort. We invite all community members to share their perspectives, suggestions, and concerns. Your input is invaluable as we work towards a transparent and fair resolution. We look forward to your feedback and hope to collaborate on a successful recovery process. Sincerely, Matt Barrett Lead Program Manager **Recovery One Foundation** ---
**Author:** ![Narrator](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/narrator/32/9923_2.png) [@Narrator](https://governance.aave.com/u/Narrator)\ **Post date:** [February 12, 2025, 10:32pm UTC](https://governance.aave.com/t/harmony-aave-renewed-proposal-for-joint-recovery-effort/21054/2 "2025-02-12T22:32:17Z")
Thr Aave DAO typically reserves its captial to grow the platform or cover incidents caused directly by the protocol’s smart contracts. Since neither apply here, can you explain how the DAO benefits by allocating capital to this initiative? ---
**Author:** ![EzR3aL](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/ezr3al/32/10721_2.png) [@EzR3aL](https://governance.aave.com/u/EzR3aL)\ **Post date:** [February 13, 2025, 6:26pm UTC](https://governance.aave.com/t/harmony-aave-renewed-proposal-for-joint-recovery-effort/21054/3 "2025-02-13T18:26:14Z")
The DAO has spoken over a year ago [[TEMP CHECK] AAVE V3 Harmony Recovery ONE Proposal - #27 by MarcZeller](https://governance.aave.com/t/temp-check-aave-v3-harmony-recovery-one-proposal/15738/27). My POV hasn’t changed. ---
**Author:** ![MarcZeller](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/marczeller/32/7124_2.png) [@MarcZeller](https://governance.aave.com/u/MarcZeller)\ **Post date:** [February 13, 2025, 10:21pm UTC](https://governance.aave.com/t/harmony-aave-renewed-proposal-for-joint-recovery-effort/21054/4 "2025-02-13T22:21:18Z")
Will Harmony get back to us every year with a money request? A no stays a no. ---
**Author:** ![sakulstra](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/sakulstra/32/2002_2.png) [@sakulstra](https://governance.aave.com/u/sakulstra)\ **Post date:** [February 14, 2025, 10:23am UTC](https://governance.aave.com/t/harmony-aave-renewed-proposal-for-joint-recovery-effort/21054/5 "2025-02-14T10:23:37Z")
It’s been more than a year that i [looked into this](https://governance.aave.com/t/temp-check-aave-v3-harmony-recovery-one-proposal/15738/8) and since then, not a single cent was put forward by harmony/recovery one to resolve the problem. As long as this is the case at least my perspective does not change. ---
**Author:** ![mbarret3](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/mbarret3/32/3470_2.png) [@mbarret3](https://governance.aave.com/u/mbarret3)\ **Post date:** [February 14, 2025, 5:23pm UTC](https://governance.aave.com/t/harmony-aave-renewed-proposal-for-joint-recovery-effort/21054/6 "2025-02-14T17:23:34Z")
The Harmony Horizon Bridge was hacked, and Aave was slow to respond. Now Harmony users’ funds are locked in the protocol. We aim to develop a solution to assist these affected users. ---
**Author:** ![mbarret3](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/mbarret3/32/3470_2.png) [@mbarret3](https://governance.aave.com/u/mbarret3)\ **Post date:** [February 14, 2025, 5:24pm UTC](https://governance.aave.com/t/harmony-aave-renewed-proposal-for-joint-recovery-effort/21054/7 "2025-02-14T17:24:51Z")
The offer has changed, but users are still unable to access their funds. Does this matter? ---
**Author:** ![mbarret3](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/mbarret3/32/3470_2.png) [@mbarret3](https://governance.aave.com/u/mbarret3)\ **Post date:** [February 14, 2025, 5:26pm UTC](https://governance.aave.com/t/harmony-aave-renewed-proposal-for-joint-recovery-effort/21054/8 "2025-02-14T17:26:28Z")
R1 represents the Harmony community. We won’t stop fighting for these users, and Aave should not forget about them either. So, let’s create some solutions. Please share; let’s create a positive place for solutions and be open-minded. ---
**Author:** ![mbarret3](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/mbarret3/32/3470_2.png) [@mbarret3](https://governance.aave.com/u/mbarret3)\ **Post date:** [February 14, 2025, 5:28pm UTC](https://governance.aave.com/t/harmony-aave-renewed-proposal-for-joint-recovery-effort/21054/9 "2025-02-14T17:28:22Z")
> [@sakulstra](#): > > It’s been more than a year that i [looked into this](https://governance.aave.com/t/temp-check-aave-v3-harmony-recovery-one-proposal/15738/8) and since then, not a single cent was put forward by harmony/recovery one to resolve the problem. > > As long as this is the case at least my perspective does not change. The previous proposal was declined. The Recovery One Foundation remains committed to supporting the affected users who lack representation. Our offer, like the recovery, has progressed. Let’s keep an open mind toward solving problems, not just hiding them or forgetting about them. ---
**Author:** ![mbarret3](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/mbarret3/32/3470_2.png) [@mbarret3](https://governance.aave.com/u/mbarret3)\ **Post date:** [February 14, 2025, 5:31pm UTC](https://governance.aave.com/t/harmony-aave-renewed-proposal-for-joint-recovery-effort/21054/10 "2025-02-14T17:31:22Z")
The Recovery One Foundation is dedicated to supporting users affected by the Horizon Bridge hack. Through the HIP30v2 framework, affected users on Harmony can swap depegged assets at approximately 20% of their original value, an improvement from the initial 7% post-hack valuation. We believe that Aave’s participation in this recovery process is inevitable, as users currently face challenges accessing their funds. In 2023, a joint proposal suggested that both the Harmony community and Aave contribute 10% each to compensate affected users. Building upon this, we now propose a renewed collaborative effort. This message serves as a temperature check to gauge the community’s interest in developing a practical solution. If there is support, we can collaboratively brainstorm and implement an effective recovery strategy. **Below Was Updated on 2/20/2025** Link to new thread after MarcZeller close this discussion: > [@Harmony & Aave: Renewed Proposal for Joint Recovery Effort #2](https://governance.aave.com/t/harmony-aave-renewed-proposal-for-joint-recovery-effort-2/21152): > > This is a second thread for the original, Harmony & Aave: Renewed Proposal for Joint Recovery Effort, On 2/19/2025, Marc Zeller shut down the discussion on recovery after his post. Recovery One Foundation comes into good faith. Closing the prior discussion so quickly doesn’t align with the principles of transparency and open governance that Aave is known for. Aave users were directly affected by the Harmony exploit, and their funds remain stuck. The protocol was impacted—that’s a fact. We… ---
**Author:** ![MarcZeller](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/marczeller/32/7124_2.png) [@MarcZeller](https://governance.aave.com/u/MarcZeller)\ **Post date:** [February 17, 2025, 4:19pm UTC](https://governance.aave.com/t/harmony-aave-renewed-proposal-for-joint-recovery-effort/21054/11 "2025-02-17T16:19:26Z")
I find this proposal to be a net negative for the Aave ecosystem, as it aims to shift the blame and responsibility for Harmony’s self-collapse. The only mistake made by the Aave DAO was allowing Harmony to claim it would deploy incentives for Aave users. In reality, Harmony mainly supported only ONE deposit and largely self-rewarded itself and frens by becoming large circular LPs, creating zero actual economic activity and exposing Aave users to harm when the bridge was hacked. The ACI will never vote for any recovery effort. We do not hold the Aave DAO responsible for this situation, except for having built a castle upon unsound foundations. ---
**Author:** ![boubou158](https://avatars.discourse-cdn.com/v4/letter/b/ec9cab/32.png) [@boubou158](https://governance.aave.com/u/boubou158)\ **Post date:** [February 19, 2025, 4:45am UTC](https://governance.aave.com/t/harmony-aave-renewed-proposal-for-joint-recovery-effort/21054/12 "2025-02-19T04:45:07Z")
How about taking some part of responsibility regarding the slowness to freeze the borrow/ lend which allows the exploit to happen? Or leaving 1000% interest shown on the UI for monthes to lend ONE and incitate some users to become exit liquidity of others? Those are also harmony’s fault? Stop being ridiculous and act! ---
**Author:** ![boubou158](https://avatars.discourse-cdn.com/v4/letter/b/ec9cab/32.png) [@boubou158](https://governance.aave.com/u/boubou158)\ **Post date:** [February 19, 2025, 5:00am UTC](https://governance.aave.com/t/harmony-aave-renewed-proposal-for-joint-recovery-effort/21054/13 "2025-02-19T05:00:07Z")
> [@Harmony Horizon bridge exploit. Consequences to Aave V3 Harmony](https://governance.aave.com/t/harmony-horizon-bridge-exploit-consequences-to-aave-v3-harmony/8614/54): > > disclaimer: The following post is reflecting my personal opinion as an individual & Aave token holder and is not representative of the Aave companies in any form. To be honest, my initial opinion was “Harmony fucked up and failed to protect their users, If governance agrees we should take the punch & loss, pay back users in stables and keep the harmony Aave market frozen and I’ll vote accordingly” but I have to voice my concerns that “expectation of bailout” is not really something I’m comfort… @MarcZeller is that what you call “supporting harmony aave users”? ---
**Author:** ![MarcZeller](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/marczeller/32/7124_2.png) [@MarcZeller](https://governance.aave.com/u/MarcZeller)\ **Post date:** [February 19, 2025, 11:09am UTC](https://governance.aave.com/t/harmony-aave-renewed-proposal-for-joint-recovery-effort/21054/14 "2025-02-19T11:09:05Z")