Regarding the Resupply Recovery Plan
After reviewing the current recovery plan, I propose an alternative approach for the community’s consideration to explore additional options before tapping into the insurance pool.
The current plan involves burning 6,000,000 reUSD from the insurance pool to cover the bad debt from the hack, representing 15.5% of the total 38.7M reUSD in the pool. While this is a viable solution, I believe we could try a less costly option first.
Alternative Proposal
Offer a white hat bounty of 2,868,832 reUSD to the hacker in exchange for returning the stolen funds.
Communicate on-chain (e.g., via a public message to the hacker’s known address) within a 72-hour initial timeframe, with flexibility to extend if negotiations show promise.
Rationale
Successful Precedents in DeFi:
In 2023, Euler Finance recovered all $200 million in stolen funds through negotiations.
dForce had nearly all of their $25 million returned by a hacker in 2020.
Allbridge recovered approximately 80% of their stolen funds via a similar bounty approach.
Low Risk: The 2,868,832 reUSD has already been raised, so this attempt incurs no additional cost. If unsuccessful, these funds can be redirected to the insurance pool or other recovery efforts.
Protecting Insurance Pool Users: A successful bounty would avoid the 15.5% loss to insurance pool contributors and reduce the DAO’s future debt burden.
Addressing Concerns: While offering a bounty may seem controversial, it’s a pragmatic approach that prioritizes community recovery, as proven by other DeFi projects.
Setting a Positive Precedent: This demonstrates the team’s commitment to exploring all solutions, reinforcing trust in the project.
Conclusion
While the team’s desire for a swift resolution is understandable, we should exhaust all options before using the insurance pool. A 72-hour bounty attempt, inspired by successful DeFi recoveries, is a low-risk, high-reward strategy. If it fails, we can seamlessly transition to the current plan, ensuring no loss of raised fun