A couple of ways i’ve been thinking about.
Option 1:
Make every non stable coin asset trade into stable coin. Commit buyback to peg tokens to to their value.
Example:
In your original post you value 1wbtc at $20,000.
Make 1WBTC tokens redeemable into $20.000 worth of 1USDC / 1DAI / 1USDT. (This is the part I am not sure if is possible)
This will reduce the amount of impacted assets, and simplify the payback process.
Commit to buy back (make arbitrage bots) stable coin tokens 1USDC / 1DAI / 1USDT in order to peg tokens to 1 dollar. Assets bought back to be burned.
Doing it this way will repeg (at least close to) all assets at a minimal cost as private arbitage bots and speculators are likely to do much of the repegging itself (I think) if Harmony commits to this buyback. Over time, assets will reduce in ciruclation of unbacked tokens.
Then there are two different routes to go:
Route 1:
Integrate these unbacked assets into new trustless bridge, run bridge on fractionalized assets and over time buy back tokens.
Issues:
Possible bank run situation due to factionalized backing
Route 2:
Continue buyback when assets are below peg, until assets are out of circulation.
Issues:
At some point could become very expensive very fast, especially after launch of Trustless Bridge as these old tokens are looked upon as relativley worthless.
Will cause a (somewhat limited) impact to Defi protocols
Option 2:
Create a new token Horizon Bridge Hack Bond (HBHB) with a circulating supply of 99,340,030.00 (Dollar value of hacked assets)
Make 1Assets redeemable for HBHB tokens in the dollar value.
Mint all nessessary one tokens at current value. Hold in a locked wallet.
HBHB holders will be airdropped one tokens in dollar value including an an interest rate (say 5%) at regular intervals over a course of 3 or 5 years.
Liquidity pools could spring up and people who need their money now could cash out. Others would see it as an investment opertunity (the 5% and potensial increase in One value)
If any tokens remain after dollar value payouts are completed, the remaining tokens are burned.
Issues:
Governments/SEC might have something to say about this.
Basically kills all of Defi. No stable coins left.
Higher circulating supply of One tokens in a few years.
No accountability from Harmony Foundation
Allthough token minting is a dangerous president to set in a situation like this, I see almost no viable option where this wont happen unfortunatly. Might aswell mint all nessesary tokens at current value, and burn tokens later if they are not needed. As long as tokens are not in circulating supply, the price impact should be relatively limited.
Edit:
Option 2 could of course be combined with a buyback/repegging strategy to reduce price and preserve Defi for the time being.
Any thoughts or input here?