How long to return to the parity of 1 assets?
any estimates?
The HIP 30 proposal did not pass (HIP-30: Validator Network Optimization and Token Emission Reduction). It prioritized recovery. Hopefully, the new HIP will be more balanced and expedite recovery. If recovery takes four years, that’s not fast enough. It looks like the price of the depegged assets is resembling individual debt that ends up in collection, retrieving only pennies on the dollar.
It would be beneficial to see an increase in the depegged assets at some point to reimburse more to those who have been affected.
R1 will continue to advocate for a faster recovery period as well as advocate for greater community involvement in the Emission DAO.
Round 10 Update: R1 has received confirmation from Harmony that we will receive Round 10 funds today, 7/11/2023, and we will make an announcement about funding the Recovery.Exchange as soon as we receive funds from the Harmony Treasury.
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The five stages – denial, anger, bargaining, depression and acceptance
We will proceed with the following steps using the proposed solution for AAVE:
- ARC: Review and provide feedback on the Aave Request for Comments (ARC) document, which highlights the problem, proposed solution, and potential impact on our community.
- Aave Snapshot: Vote on the proposal using Aave Snapshot to understand community sentiment without incurring gas fees.
- AIP Preparation: If the proposal garners support, prepare the Aave Improvement Proposal (AIP) and submit it on-chain.
- On-Chain Proposal: Pay the proposal fee in AAVE tokens to create the proposal on-chain.
- Voting and Execution: Participate in the community vote, and if approved, the proposal will be executed.
Step 1: ARC
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The Recovery One Foundation plans to launch an Ambassador Program in Fall 2023, aimed at enhancing community engagement and communication, expanding awareness, and providing support for the ongoing recovery of depegged 1Assets.
Program Type: Ambassador
Timeline: Start Fall 2023 (End of Q3)
To learn more visit: Recovery One’s Fall 2023 Ambassador Program Outline | by Recovery One | Jul, 2023 | Medium
You should rethink the $0.005 premium.
On June 6th, the value of 1USDC was ~$0.058, therefore the premium was ~8.6%.
Currently, the price is ~$0.076, meaning the premium would shrink to just ~6.6% if a new round started today (a decrease of almost 25% from June 6th).
As the value of the underlying assets increase, the relative value of the premium decreases. Instead of a flat $0.005 premium, it should at least be an 8.5% premium (like it was on June 6th) for every round.
Just a couple months ago R1 was offering a 20-25% premium. That may have been too high, but I don’t think it needed to be reduced this low, either. I had previously suggested reducing it by half to 10-12%.
Thank you, Trick, for your analytical insight. We appreciate it! We are constantly inspecting our burn efficiency, being cognizant of price action. The swap cost and LayerZero bridged USDC value variations are considered in setting the exchange rate during the rounds. Round 10 started mid-month, so this round will extend slightly into next month. Please know your perspective helps us optimize strategies.
Here you go.
Tranquil’s burn tx
I everyone,
I am not good in economics and defi but my understanding is that since the bridge hack there is no more underlying assets on ethereum side of the bridge since they have been stollen by the hacker.
Even if you burn 99.9% of the circulating supply, the remainings 0.1% tokens will still have no value.
Can you explain to me how do you want to regain the peg without having new assets comming on ethereum side of the bridge?
best regards
The backing now is essentially the harmony treasury (plus the 25% staking emissions) agreeing to buy back all the assets.
Hi cocojazztv, great question. Here is my take.
Recovery Progress:
- Harmony’s recovery has several stages, and we’re currently witnessing meaningful progress.
- Harmony’s strategy is to remove “depegged 1assets” with the help of three burn partners.
- To support this, the Harmony treasury is providing funds, and new measures like HIP30v2 and the Emissions DAO are accelerating the process.
- A unanimous consensus vote and rising value of depegged assets post-vote suggest the market’s confidence in this recovery plan.
Underlying 1assets:
- The hack did compromise the value of these assets.
- However, the trust is being rebuilt through Harmony’s consistent efforts, especially after 10 Burn Rounds, the recent HIP30v2 vote, and the Emissions DAO’s establishment, all of which aim to fund and facilitate recovery.
Burn and Value:
- Burn partners are removing depegged 1assets, with over 10% already taken out.
- While the first 10% removal was easier due to liquidity, the following stages might be pricier, leading to a potential rise in asset prices. The idea is: as more assets are burned, the remaining ones might see a value increase, especially with the community’s growing trust.
Future Approach:
- I’m thinking that depegged assets will not return to their original pegged price. So, Harmony has introduced new “LayerZero assets” to restart Defi on Harmony.
- While they continue to remove depegged assets from the past Horizon hack, Harmony will bring in more assets through the LayerZero bridge.
- The road ahead demands patience, but there’s noticeable progress, and the market’s positive response is a good sign.
Interesting take, Seebee. The passage of HIP30v2 and the creation of the Emissions DAO do add additional support to the recovery plan.
Hi @mbarret3
I’ve noticed a couple of bugs in the fronted of the recovery exchange. The first I pointed out a few months ago already which is when the allocation per wallet increases the fronted doesn’t update, so we get the $520/$300 situation.
Number 2 is when I click approve and the transaction goes through the Approve button doesn’t change, you have to click it again. My guess is it’s querying the blockchain on submitting the transaction instead of the transaction going through.
Number 3 is not so important but ideally the $ remaining should update when a transaction goes through.
Are we still funding a developer for R1? These are pretty minor fixes