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According to PANews news on July 20, the Aave community governance page showed that some users proposed a joint recovery plan between Aave and Harmony to make up for the loss of user funds on AAVE after the Harmony blockchain was hacked. A central part of the recovery plan is the establishment of the Recovery Fund, with Harmony and Aave each contributing 10 percent of the total required reimbursement funds. Will enable affected users to immediately recover 20% of their pre-hack balances, providing some immediate relief and laying the groundwork for further recovery efforts. Part of Aave's contribution will come from writing off its depreciated assets currently held in the Harmony DAO treasury, approximately 2 million aONE and 700 aLINK tokens. The remaining contributions from both parties may come from their respective reserves or other funding sources.
The proposal also introduces the Decaying oracle mechanism proposed by the service provider BGD, which will start with a recovery rate of 20%, and then gradually reduce it to liquidate decoupled assets as early as possible in a gradual depreciation manner. If there are remaining bad debts, this debt will be divided equally between Harmony and Aave. The restoration process is expected to take around four years.
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