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 comfortable with, the whole crypto ecosystem’s origins is a reaction to what happened in 2008, crypto is not supposed to replicate traditional finance but provide an alternative to it.
If we allow a system where actors take all the risks, and cash in the profits but in case of something bad happening, they can legitimately rush to nanny protocols and ask for their money back, are we any better than Banks and governments?
in this situation, I’ll be clear, Harmony failed their users, failed at building a robust bridge & failed at providing a clear answer in a short delay (1 month to tell users their solution is BRRRR) that lead to slower reactions of protocols on top, making bad things worse.
but in every case, there are two ways to make money in this world, 1) is hard work 2) is taking some risks. anyone telling you there is a third option is a scammer.
using Harmony was a risk, and now that risk materialized.
to answer to that risk, a bailout has never been a mandatory option. The safety module doesn’t cover Harmony V3 (the currently supported market is Aave V2 ETH, Polygon & Avalanche + Aave ARC) and any bailout would require a specific AIP vote.
As people that took a loss need Aave governance approval to get a second chance to nullify the consequences of a risk taken, I would kindly advise some to change gear in their entitled & aggressive attitude towards Aave on here. because I’m still personally in favor of supporting Aave Harmony users while being firm on the fact that Aave worked as intended,
but at this point, I might be a few aggressive posts away from changing my personal vote if an AIP is deployed on this topic.