Hello,
Following the recovery one plan presented last night, i would like to know what is planed to be done to solve the uncollectible loans issue on aave? I did not hear anything on that in the meeting and i wonder how rOne will help fix that. It was part of the initial rembursement proposal and i feel it has been forgotten. Could you please give a status on this specific point?
Thanks by advance
AAVE is a very large issue, and a complicated one. They allowed users to abuse their protocol after the hack, which lead to about 450K loss. This could have potentially been avoided by freezing borrowing and adjusting oracles, like what many other lenders have done.
That being said, each lender has their own proposal being worked on and AAVE in particular has not been confirmed at this time. R1 is working on this though in conjunction with lending partners.
I have nearly 600k ONE locked up in loans on AAVE. I have no control over what the AAVE team does, I just want my ONE unlocked. How do we get to a resolution for this sooner than later? I don’t care about politics, I care that I get my ONE back so that I can continue to use it. Right now, I am getting nothing.
We are a group of users who potentially lost everything, let’s call ourselves a victims.
There are some other groups of people: Harmony Team and community, AAVE Team and community, AAVE users who managed to borrow using the exploit situation.
So far, from what I understand and see no one except the victims has got any will or motivation to do anything. Actually it is more convenient for everyone to do nothing and wait for others. Unfortunately victims cannot do anything, we are completely powerless.
Only one thing to do is to raise the awareness, be vocal, remind everyone, stay active and ask for the solution.
You can have a look here for legal actions: Recovery One - Community governance for depegged tokens - #105 by MaewouOne
If nothing is done to reimburse lenders, I am considering joining the lawsuit.
@zoufou and @UnArge4, I understand your frustration. I think it’s hard to focus on one issue or one group when there’s so much going on right now and so many separate issues that affect different groups that need to be solved.
I’m not directly affected by Aave myself, but I’m interested enough in helping if I can at some point soon. And believe I could at least make somewhat of a compelling case to Aave to hopefully work towards some kind of a solution and reopen the discussion at least. Likely it’s going to have to involve the team either way. But I’m sure they want to solve this as much as anyone too.
Would not recommend supporting anything related to a lawsuit though. Do not think that’s the solution.
its been nearly 3 months and funds are still locked with no other option. If a law suit is not the path forward, how much longer should we wait? the legal action is only if the Harmony team doesn’t resolve the issue with a more warranted outcome than what was proposed. AAVE could help Harmony if they wanted to with their Treasury, why don’t they? The issue here is making things right for the Harmony users who loaned out their tokens with risk in mind for compensation for that risk taken, now there is nothing coming to those locked tokens and meanwhile the debate continues with no solutions to be executed.
Any updates on this?
Any updates? Over two years without a resolution to frozen AAVE Harmony markets.
I feel like some updates are coming soon. I believe that Harmony team is working in the background to be able to compensate the victims.
They quit contributing to recovery in Nov 2023.
They certainly aren’t thinking about it nor working on it.
The community has been trying but there is no one on the team responding.
Victims didn’t receive even $1 compensation.
Yep, sounds like a Harmony problem.
They don’t even want to let the community who’s fully funding recovery to use the funds that are available and have been pooling since June 2025.
I’ve said it in the past, AAVE governance is only interested in protecting AAVE token holder’s interest. It’s been years since the harmony bridge hack incident, AAVE’s behavior after that proves my point.
If you’re a retail user thinking Aave is a unified protocol with equal protection for everyone, you need to look at the receipts.
The DAO isn’t protecting “users”—it’s protecting the capital of its largest stakeholders, and the double standard is staggering.
Whenever something goes wrong on Ethereum, the DAO treats it like a national emergency and opens the vault immediately.
The $27M Oracle Refund (March 2026): Just last month, a glitch in Aave’s own price oracle (CAPO) caused $27M in liquidations for healthy wstETH positions on Mainnet. The DAO didn’t even make users wait. They bypassed the “Safety Module” and used $1.2M worth of ETH from the Treasury to refund everyone in 14 days.
The $58M rsETH Stabilization (April 2026): Right now, the DAO is voting to spend 58 MILLION DOLLARS from the treasury to backstop the rsETH bridge hack. Why? Because the whales have their money in ETH LSTs, and a cascade there would tank the protocol’s “Mainnet” reputation.
Compare that to the treatment of “non-core” chains. When a technical failure happens there, you are told to kick rocks.
Harmony One ($1.2M): Aave used a “blind” oracle that reported USDC at $1.00 while it was trading at $0.20 on Harmony. Arbitrageurs drained the protocol. The DAO’s response? A 99.8% “No” vote on helping users. They told lenders to “contact the bridge team.”
Fantom & Avalanche: Following the Multichain bridge hack and various liquidation crises, bad debt was left to sit or be “socialized” (meaning the users eat the loss). No treasury bailouts were offered.
The disparity isn’t even subtle. Aave’s “Safety” depends entirely on your zip code (Chain ID).
| Event Type | Location | Cost to DAO | Outcome |
|---|---|---|---|
| Oracle Failure | Ethereum | $27M+ | FULL REFUND. “Protocol integrity is key.” |
| Oracle Failure | Harmony | $1.2M | DENIED. “User should have known better.” |
| Bridge Hack | Ethereum ($rsETH) | $58M | IN PROGRESS. “Essential for ecosystem stability.” |
| Bridge Hack | Harmony/Fantom | $100M+ | IGNORED. “External chain risk.” |
It’s simple: The Safety Module is for marketing; the Treasury is the Whales’ personal insurance fund. The “Safety Module” (where users stake AAVE) is technically a failure. If the DAO actually “slashed” the stakers to pay for a hack, the AAVE price would crash. To prevent this, the whales vote to use the Treasury (the fees you pay) to fix their own mistakes on Ethereum. They won’t do that for Harmony or Fantom because the whales don’t live there—there’s no one “important” to protect.
Aave has created a two-tier legal system. If you are a whale on Ethereum, the DAO will spend tens of millions to make you whole for their technical glitches. If you are a retail user on a sidechain, you are an unpaid beta tester.
Stop calling it decentralized governance. It’s an oligarchy that only bails out the board of directors.
TL;DR: Aave uses its treasury as a “get out of jail free” card for Ethereum whales while telling Harmony and Fantom users to rot over the exact same technical failures. Governance isn’t about “safety”—it’s about who owns the most tokens.