First, I’ll highlight that I can’t make decisions for either party, nor can I fund any sort of solution that is agreed upon. I have spent hours both in discussion with the BGD team (they provide technical services to the AAVE DAO) as well as reading through the AAVE documents and forums. Here’s a recap:
AAVE wants a deposit. They in some ways acknowledge that about half of this bad debt was accrued post-hack. They cannot guarantee that Harmony will be a partner or supported by their platform in the future, regardless of any funding solutions. They had an internal issue with Harmony being added to their protocol in a state of limbo between versions, which left the Harmony assets uncovered by their treasury set-aside. They are decentralized and have not launched any official and approved by the AAVE community proposal to address the concern. Why? Because the AAVE community recognizes this as a small problem for a few users (compared to the whole). This is not my opinion, this is what I have gathered from reading everything pertaining to the subject on both forums. I am not saying that to downplay the $500k of user funds that was lost (pre-hack), I am saying this because the AAVE community needs to answer the ARC here and approve a proposal for anything to even be considered: ARC: Harmony Recovery - Governance - Aave
Even then, the likelihood of funding the full 1M + that is stuck is low, because of the finger pointing of who’s problem is that additional loss that is due to the hack/ AAVE oracles/ lack of action post-hack (they allege they reacted within 30h). Here’s an example from an active AAVE user on a proposal outline:
Later, they went on to say that they didn’t want to make it an official proposal because::
"The problem with this proposal is that everyone who is not a victim here, does not see any positive points or benefits. I’m having plenty of doubts about this now.
Maybe good approach is to first find more positive aspects of this solution to AAVE stakolders?"
You’re right, no one is spending enough time representing AAVE users. It was a relatively small loss considering the whole, and there are few active and loud voices from the AAVE community. I recommend those few bond together and petition to the larger AAVE community, push a proposal (which gets approved) and pitch it to R1+Harmony. I also suggest that the proposal highlight any potential ongoing value that AAVE might represent for the Harmony ecosystem as a nice sprinkle on top for thought.