Horizon Bridge Recovery

Community
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Hello everyone. I’ve been doing a lot of thinking lately on how to make the recovery more effective on helping out victims of the bridge hack. Currently data can be pulled to see what addresses held the assets and how many they had before the hack. If an exchange was opened dedicated to just the victim’s wallets it could be like an order book exchange. Each wallet can set different limit orders for what they’d accept for their depegged assets. Each address would be able to exchange the amount of assets they had before the hack in total. Each recovery round a set amount of ONE could go to this exchange to fill the lowest valued orders. I believe this approach would help earn trust back from the victims of the hack.
AAVE and Tranquil victims need to be addressed as well somehow.

I’d really appreciate your feedback, thank again :blue_heart:

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Great work @PeaceLoveHarmony !

Absolutely, your idea for a dedicated victim recovery exchange has merit, especially in terms of regaining trust. Here’s how we can build upon it and integrate some additional points:

Concentration of Liquidity is Key:

You’re right, focusing on one, unified solution is crucial. Scattering efforts across “one-off” attempts has proven ineffective. The victim recovery exchange could become that central platform.

Leveraging Existing dApps:

Instead of building from scratch, let’s explore forking existing, reputable dApps to expedite development. This reduces technical hurdles and leverages established user interfaces. We can then customize the forked dApp to function as the victim recovery exchange. Thinking about openocean its limit order function (and make it actually work…)

Prioritizing Burning Smallest Pools:

Burning the smallest depegged asset pools first would demonstrate tangible progress. Seeing a successful burn not only instills confidence but also frees up some liquidity within the overall system. This freed-up liquidity can then be used to address larger pools in subsequent rounds.

Combining our Ideas:

Here’s a potential approach that incorporates your exchange concept with the focus on burning smaller pools:

  1. Fork a proven dApp: Choose a well-regarded dApp with order book exchange functionality. =
  2. Victim Wallet Integration: Develop a system for victims to connect their compromised wallets to the forked dApp. We can leverage data to verify pre-hack asset holdings. Utilizing the snapshot date?
  3. Limit Order Setting: Allow victims to set minimum acceptable conversion rates for their depegged assets.
  4. Phased Pool Burning: Allocate a portion of the ONE used for recovery efforts to buy and burn the smallest depegged asset pools first.
  5. Transparency & Communication: Continuously update victims on progress, outlining the amounts burned and planned actions for larger pools.

This approach offers a structured path towards recovery while demonstrating immediate action through burning the smallest pools. It also utilizes existing technology and focuses efforts on a single, central platform.

Next Steps:

Let’s discuss this further and brainstorm additional details:

  • Community Outreach: Collaborate with the Harmony ONE community to garner support and participation.

  • Utilizing UTIL for some?:

By combining your exchange concept with a focus on burning smaller pools and leveraging existing infrastructure, we can create a more effective recovery plan. This will not only address the financial losses but could also rebuild trust within the Harmony ONE community.

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I love it! Thank you very much for the input and feedback! I really like your ideas.
I planned on scheduling an X-Space to get more community input and feedback. I’ll make sure you’re available if you’d like to join.
Lets make it happen :blue_heart:

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@4MCrypto looks like it would work great to fork open ocean, excellent thinking!

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Just a follow up. To be clear I’m not a victim of the horizon bridge hack, I’m just a passionate community member that wants to see Harmony succeed and gain back trust. I’ve been in the community for longer than most core team members at this point.

Why do I want a change of the current recovery? There will never be a full repeg, currently it’s just an arbitrage opportunity for anyone that has a wallet older than the hack. Most wallets before the hack didn’t even use the bridge. I’m also concerned that because Recovery ONE gets paid $1000 each per month(round), it’s become income for them so why would they want to speed it up? I believe they are also benefitting from the arbitrage. I’ve asked them to be more transparent about their pay now that the community is paying for it, I’ve also asked what they plan on doing with their Layer Zero airdrop that they qualify for from using all these funds to bridge over stables. I just get ignored.

I have much respect for @Pioneer and I recall him having an issue with R1 that never got resolved or even acknowledged by the team, so he ended up leaving the community. All the time he put in for the recovery, following transactions etc, his issue should have at least been acknowledged.

@theo1 @lij @Casey @sophoah

Please read through these ideas and provide some feedback. We’re just getting started.

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Sounds complicated and confusing AF

WHY not just exchange WONE at 5%-10% rate.

Either make it a *Smart DEX to automatically ajust the exchange rate.

Or do like Recovery.exchange and change the rate once or twice a week, manually

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How exactly do you measure
“Victoms of the Bridge Hack”

The whole HarmonyONE Ecosystem was immediately effected by the 100 Million hack and is still suffering years later.

Why make a *members only exchange and somewhat penalized the harmonauts that have stuck around and may have not been holding many or no Depegged assets,
Directly :blue_heart:

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Thanks for your feedback.
I double checked with chef soy sauce that it’s possible to pull data and get all the addresses that held the assets from the horizon bridge and how many of each asset they held.
It affected the whole chain’s trajectory from the hack, but if you didn’t actually hold the assets you wasn’t a victim.

5-10% really isn’t much in the grand scheme of things, to be honest it’s a little insulting if you ask me.
Setting orders really isn’t that hard. I always prefer to use limit orders when available. Forking open ocean allows you to be able to set orders without locking up your tokens as well.
This method would address the victims more and make them start to feel whole again, not scammed.
The longer this recovery takes, the harder it’ll be to address the actual victims because it’s not safe to use the same keys for too long. Yet it’s the only way to track the victims.

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Not sure why you think harmonauts need to benefit from the recovery more than just the satisfaction of victims being made whole again and earning back trust?

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Hey, I really appreciate the enthusiasm and innovative thinking here.

I understand the priority is to support the victims of the hack. However, your proposal could ultimately benefit the recovery process as a whole if whales or arbitrageurs begin purchasing depegged assets to resell on the exchange.

What stands out to me in your idea is that it provides the recovery partner with insight into the exchange rate at which users are willing to sell, without any obligation to buy.

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Thank you very much for the feedback @sophoah :blue_heart:

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im a victim of AAVE.
i agree with your opinion because I am so disappointed with Harmony Team.

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I fully agree with this. and even more interesting… Various people have stated that the “1000 dollar fee” isn’t active anymore only to have various other members state this again (from the recovery committtee… ). Clarification would help!

Would be amazing to have an up to date FAQ / Info page that is not (for once) to be found on the various loose platforms but one unifying hub. For example update the linktree and remove old (deprecated into an archive linktree?)

Another thing where transparency and communication would benefit us all.

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Assuming an orderbook-based DEX exists, we should set up some simple rules regarding recovery partners’ participation on trading and disposing depegged assets using recovery funds. The rules need to be fair, transparent, and resilient against arbitrage

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Thanks Aaron, I couldn’t agree more. What do you think would be fair?

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You could in theory take a snapshot right now of who has what assets, then only allow those accounts to burn that amount. This would mean no-one could arbitrage anymore, it’d just be choose your exit price from now.

You’d have to fairly compensate those who bought in a fair market since the hack, otherwise you’re just stealing from one group to pay another.

Also, have you considered that the speculation and arbitrage might be largely what’s pushing the price up for the actual victims to exit with a better price now?

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Honestly I think the simplest and fairest solution would just be to set up a daily or even hourly buy on one of the dexs. It’s directly ONE->Depegged assets, almost no fees, it’s fair, no arguments, no massive arbitrage every month and the market can just set the price for you.

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I would say ANYONE, that was using HarmonyONE, at the time of the hack, were/are victims.

Not just depegged asset holders.

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Why Not just let Modulo, give $WONE
In LP Rewards pools
Easy to understand, teach & Execute

:point_down:

Draft: Revamping Community Harmony Recovery Plan System

Executive Summary
Community Harmony current Recovery Plan System employs a modulo mechanism to burn depegged tokens. However, this approach has proven ineffective in achieving its intended goals. This proposal advocates for a paradigm shift, replacing the burning mechanism with incentives for Liquidity Providers (LPs). Under this revamped system, users creating LPs for depegged assets will receive rewards in the form of ONE tokens, typically allocated to modulo participants.

Background
Community Harmony’s Recovery Plan System aims to stabilize the value of its native token, ONE, by burning depegged tokens. However, the current modulo-based burning mechanism has been deemed inefficient and lacking in substantial impact.

Proposed Solution
This proposal introduces a transformative approach to the Recovery Plan System by replacing the burning mechanism with incentives for LPs. This incentivized LP model will encourage active participation from the community, leading to increased liquidity and accelerated recovery efforts.

Key Advantages

  • Enhanced Participation: The proposed system fosters broader community involvement by incentivizing LP creation for depegged assets, thereby boosting trading volume and liquidity.

  • Augmented Burning Effectiveness: By attracting more LPs, the system facilitates more efficient burning of depegged tokens, expediting the recovery process.

  • Inclusive Incentive Structure: This approach democratizes incentives, extending benefits beyond whitelisted users to the entire community.

  • Support for RecoveryOne Team: The system empowers the RecoveryOne team in their endeavors to burn depegged tokens and restore token value.

Implementation Details

  • LP Creation by Users: Users can create LPs for designated depegged assets on compatible DEX platforms. Recommended DEX platforms will be announced by the Community Harmony team. Users should thoroughly understand the associated risks before initiating LP creation.

  • ONE Reward Distribution: ONE tokens typically allocated to modulo participants will be redirected to LP rewards. The monthly ONE reward allocation will be determined based on the total value locked (TVL) across all depegged asset LP pools. Distribution will be proportional to each users respective LP TVL.

  • Reward Claiming: Users can claim their ONE rewards at any time through the DEX platform used for LP creation. Claiming frequency can be customized by users. Claimed ONE rewards will be transferred to their respective wallets.

Dual Incentive Structure: Users creating LPs for depegged assets will reap two types of incentives:
a. Trading Fees: A portion of trading fees generated from the LP pool will be distributed to LP participants.
b. Lock LP Rewards: Users will receive ONE rewards based on their LP TVL.

Anticipated Benefits
User Benefits:

  • Access to ONE token incentives
  • Contribution to token value recovery efforts
  • Enhanced depegged asset liquidity

RecoveryOne Team Benefits:

  • Accelerated depegged token burning process
  • Increased community participation in recovery efforts

Community Harmony Benefits:

  • Strengthened depeg token value and stability
  • Enhanced community trust in the platform

Conclusion
This revamped Recovery Plan System is poised to revolutionize Community Harmony token recovery efforts by fostering active community participation, boosting liquidity, and expediting the recovery process. The proposed incentivized LP model holds immense potential to restore the value of ONE and propel Community Harmony towards a brighter future.

Thoughts :rocket:

ANON Community Member :point_up:

What an Amazing Harmonaut :woman_astronaut:

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Please tell me how your a victim if you didn’t hold any bridged assets? ONE was pretty much the same value now as it was at the hack.
Unfortunately the lp idea I don’t believe would have any effect. It wouldn’t incentivize people to burn depegged assets.

1 Like