The proposal though, does not attest this.
One doesn’t need to insinuate things here to read this proposal text as: “Aave reacted to slow”, “Aave used unfit oracles” as the whole text leaves out any involvement or accountability on the Harmony side.
To me this doesn’t really look like “committed to finding a solution”.
You want to develop some custom contract deployed on a chain, with an explorer that has no functional verification.
In the end result - if i correctly understand - you force ppl to chose between accepting 80% loss or losing everything (funny enough in this scenario the only users incentivized to interact with the “recovery” are the ppl who have 0 trust in recovery).
There has been so much discussion on this, without any action following.
Last time the feedback ended up in some weird chatgpt summary without anything ever happening.
If the goal really is to start a dialog, let me start by re-summarizing what I personally think have been the most promising suggestions (all of this has been suggested in one form or another).
- Use the funds pulled from the rewards and/or some subset of the funds used in the rounds to liquidating users - receiving de-pegged tokens to burn and providing exit liquidity to users.
Once this is done/started and Harmony/Recovery One has shown some basic actions I think things that could be reasonable, and find support:
-
In the past teams involved in treasury management (e.g. llama) completely ignored harmony - i guess it’s safe to assume for the DAO the funds are lost anyways. Therefore one could ask the DAO to burn the harmony treasury assets. It’s more than 3.5% of the current total pool assets (reducing awONE to cover by 2.5M).
-
By my understanding of the aave protocol one step to help the recovery to be more efficient in liquidations is by decreasing the Liquidation Threshold of assets (as more accounts borrowing wONE get liquidatable if they don’t repay) and increasing the Liquidation Bonus (so Recovery One or whoever receives more depegged assets in return).
Probably it also wouldn’t hurt to look a bit deeper into the actual positions.
I had a very brief look at the first page of wONE borrowers on Chaos Labs and it seems that at least some subset of the vWONE debt is leveraged against aWONE so it zeros itself out, reducing the actual debt to cover.
- 0xc5543b3a2973dd3b9d156376e1e8e7d0dcac3664 (18k)
- 0x78b348195f53f526889bde7e478d1a5d4bf041bd (1.1M)
- 0x2dd5a62a5d4e4d20622061c823f9648e3078012d (352k)
- 0x4d18f430055f1404e32069288d55350782cd1cfa (125k)
- 0xee4333d7b8f8a23f88cdd88940193d5de3d12cb0 (40k)
… anyhow as noted above there’s more then a year ppl putting energy in discussions and coming up with suggestions that in the end never resulted in any progress on the Harmony side. Therefore I strongly suggest to go with just 1) and once some minimal progress is done gauge on how things could be improved.