Harmony Recovery: Round 6
Summary of Funding Round 6
The Harmony Blockchain Recovery process has made significant strides in its sixth funding round. The Harmony treasury allocated $120,000 USD to its three burn partners, Recovery One Foundation (R1), Tranquil Finance, and Modulo, who have continued their efforts to remove depegged 1Assets resulting from the Horizon Bridge hack in June 2022. This article presents a concise overview of the results from Funding Round 6.
Despite lower Harmony treasury funding in Rounds 4, 5, and 6, impressive efficiency and strong demand led to higher redemptions.
In Round 6, the three burn partners managed to burn $1,163,884 of 1Assets, a considerable increase in efficiency compared to $890K in Round 5 and $1.1M in Round 4. The individual breakdown of the burn partners is as follows:
- Modulo: In Round 6, Modulo burned $469,014 bringing their total burned across all six rounds to $2,958,805. Modulo’s Dutch Auction mechanism has proven to be an effective tool in burning depegged assets, as it allows users to sell their 1Assets at a dynamic price that converges towards the market value. The success of Modulo’s approach can be attributed to its transparency, user-friendliness, and ability to adapt to market conditions.
- Tranquil Finance: Tranquil Finance demonstrated a strong commitment to the recovery process by burning $300,870 in Round 6, with an additional $20,000 allocated for bad debt resolution. Their total amount burned across all six rounds now stands at $2,244,286. Notably, Tranquil Finance is proactively participating in the recovery process and simultaneously developing the upcoming Tranquil v2, an enhanced version of its lending platform. Tranquil v2 aims to effectively address the issues that led to the depegging of 1Assets by introducing new bridged assets, new oracles, and pairs, enhancing security protocols, and streamlining the user experience.
- Recovery One (R1): R1 efficiently burned $394,000 in Round 6, making a significant contribution to the overall recovery process. The total dollar value of burned 1Assets for R1 has reached $2,360,000. R1’s Recovery Exchange has been a crucial component in the redemption of depegged 1Assets, providing users with a highly accessible platform to trade their 1Assets at the most competitive rate among the burn partners — a flat 10% parity. R1 is diligently working on Recovery Exchange V2 for Round 7, ensuring continued progress and success in the Harmony Recovery process.
As of the conclusion of Round 6 in April, the Harmony Treasury had allocated a grand total of $810,000 across six rounds to its three burning partners. In total, an impressive $7,563,091 worth of 1Assets had been burned, showcasing the efficiency, unwavering determination, and progress of the Harmony Blockchain Recovery process. This accomplishment highlights the steadfast commitment of the Harmony community and its burn partners in tackling the challenges resulting from the Horizon Bridge hack.
The recovery process has generated significant momentum within the community, demonstrated by the involvement of five burning validators: Burning Validator, EasyNode, Repegging Node, Tracker, and Recovery validator. This collaborative spirit showcases the Harmony community’s dedication to resolving the depegging issue and revitalizing the ecosystem. Furthermore, Hector (Twitter handle: @Houndvalidator) has joined the Recovery One steering committee, playing a vital role in daily communication with the community and facilitating interactions between users and validators. We extend a warm welcome to Hector and express our gratitude and respect for the service of our former members.
While the core team continues to work tirelessly on the development of new products, services, and efficiencies for the protocol, the community remains dedicated to exploring innovative burning solutions to support ongoing efforts. Together our aim is to strengthen and reinvigorate the Harmony ecosystem, with the goal of creating a more dynamic blockchain.
We anticipate the commencement of Round 7 during the week of April 10th.