Harmony Horizon bridge exploit. Consequences to Aave V3 Harmony

I am not sure to see how this is related to aave frozen funds?

User, on behalf of User and User’s assigns, heirs, and estates (the “Releasing Party”) hereby generally releases and forever discharges foundations, associations, operating companies and development companies for the Harmony ecosystem and their affiliates, and their respective past and present, core developers, validators, officers, directors, employees, shareholders, partners, agents, principals, managers, attorneys, contractors, contributors, insurers or indemnitors, parent corporations, direct and indirect subsidiaries, affiliates, predecessors, successors, assigns, heirs, and estates (the “Released Parties”), and each of them, separately and collectively, from any and all existing claims, liens, demands, causes of action, obligations, damages, and liabilities of any nature whatsoever, whether or not now known, suspected, or claimed, that the Releasing Party ever had, now has, or may claim to have had, including without limitation those arising from or relating to the Harmony Horizon Bridge Hack (the “Released Claims”). For the purposes of this Agreement, “Horizon Bridge Hack” means the conducting of unauthorized transactions on June 23, 2022, by a malicious third party on the Harmony Horizon bridge that resulted in the transfer of cryptocurrency asset tokens from the Harmony Horizon Bridge to the malicious actor’s wallet.

User acknowledges and agrees that we are not affiliated with the Released Parties and are the sole party providing the services on our platform as described herein. Nothing herein shall be construed as creating any obligation to User from the Released Parties, nor any agreement between the Released Parties and User, provided however, that User acknowledges and agrees that the Released Parties are intended third-party beneficiaries of this section and the release for the Horizon Bridge Hack contained herein. User further acknowledges and agrees that User shall have no rights in respect of any funds provided to us by the Released Parties to facilitate the development of our platform or delivery of its services or to otherwise enable any contribution made by us to the Harmony ecosystem.

Sorry but i understand nothing on what this is nor where it is coming from. And how it will help for a possible resolution.

Say bye to your money.

I still have faith in aave to make the right decision. Especially than around 2 days only of aave profits could compensate users and this could be a really good advertisement and promotion for aave: more people would come to lend and borrow seeing that an issue got solved in the past by aave team, and hence increasing even more aave profits and aave coin value. It would be a win/ win situation. Hope they will understand that and are not only looking on the short term vision “we will lose two days of profits”.
We all need positivity in this hard time so keep positive buddy!

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Hope is for people who can’t see the Truth.

any update from the harmony team to resolve the problem with AAVE locked Harmony tokens?

Can we keep this thread on topic?

Yes. Please add something valuable here that is on topic. The best would be the update on the progress of releasing the funds from AAVE. Many thanks.

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Done. Hopefully we can get some movement in a positive direction. I’ve been sitting on the sidelines hoping this problem(s) would recifity themselves, but it appears noone is taking an active role.

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I’ve posted an ARC request for the AAVE community to take action.

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Thank you! Well done.

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Hope this will be supported from the community and that we find a solution to fix this :heart:

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Could we please have your participation on the ARC governance post for harmony recovery? It would be good to have you there. Thank you and best regards.

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Is there anything moving towards fund recovery?

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I have not been affected by the hack personally, but this issue seriously needs to be sorted out. It is not a good look for anyone.

Lets walk through the events here:
Aave launches lending platform, uses chainlink oracle to mirror price of real asset. All is good.
Horizon Bridge gets hacked, funds on Ethereum side is stolen. Leading to 1assets technically being worthless.
Massive selloff of bridged 1assets, people go into native harmony assets. Price of 1assets take a massive dive.
Aave using mirrored prices, meaning prices of 1assets are artificially high.
“Smart Individuals” understand they can take out loans against these artificially high valued assets, and make most of their money back no. (Flaw in Aave Protocol)
Certain assets now being being over leveraged with no way of returning. (These “smart individuals” will have no incentive to ever pay back this loan, and the Aave protocol will forever be in a state of limbo if nothing is done)

I really think the Aave Community should be grateful for this hack, considering how relatively small it was. It exposed a flaw in the protocol. Relying on external pricing for a bridged asset.
Considering Aave is a multichain protocol, this could have been much worse. Or could become much worse in the future if something similar were to happend.
Bridges are great for connecting blockchains together, but we must not forget that each blockchain are siloed ecosystems on their own.

Proposal:
Snapshot current state.
Change from off chain oracle pricing to on chain pricing. Thereby liquidating bad debt.
Reimbursement to be made for One and Link Token asset holders. (My proposal is for Harmony and Aave to split these costs 50/50 as blame here could be placed on both parties)
If AAve wish to continue on Harmony update with new bridged assets.

For Aave to change to on chain pricing of bridged assets for markets on all blockchains.

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This discussion has been open for months and is currently running in circles.

The community is free to open a standard ARC thread and follow the governance process to move forward.

Closing this topic as there’s little to no added value to the circular discussion.

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