Harmony Recovery: Round 8
Summary of Funding Round 8
In May 2023, the Harmony treasury distributed a total of $120,000 in USDC and ONE tokens equally among three “burn partners”. These partners, Modulo, Tranquil Finance, and Recovery One (R1), have been actively working to eliminate depegged 1Assets resulting from the Horizon Bridge hack in June 2022. This article provides a brief summary of the outcomes achieved during Funding Round 8.
In this round, a significant correlation was observed between the increased efficiency and price movement of Horizon Bridge-affected assets, which began around May 21st, 2023.
In Round 8, the recovery process noted a considerable advancement, with $1,504,027.92 worth of assets being eliminated. This figure presents an increase of $574,027.92 compared to the total in Round 7. The data indicates that the efforts are yielding positive results, as the value of the recovery efforts continues to grow.
Modulo V5 incorporated almost all of the affected 1Assets into their Dutch Auction mechanism. This highly effective strategy significantly contributed to this round’s funding, leading to approximately $627,380.92 1Assets being burned by Modulo. To date, Modulo has demonstrated excellent redemption ratios, having burned a total of $4,150,361.12.
Tranquil Finance continued assisting the recovery process through a direct market buy-and-burn, exchanging $20k USDC for approximately $307,467. This helped stabilize the market as Round 8 proceeded. Furthermore, Tranquil utilized $20k of the allocation to offset a portion of the ‘bad debt’ from their lending platform, preparing for a V2 launch of their money market. The total amount Tranquil Finance has burned to this point is $2,860,113.
Recovery One Fdn- At the start of Round 8, R1 launched a new recovery contract that incorporated community feedback and introduced an updated user interface. One significant feature of this round’s updates was the implementation of a Merkle tree, which facilitated on-chain verification of 67k pre-hacked addresses. This update also gave priority to R1 voters for the first 24 hours and gradually raised the refundMultiplier. (View more details). R1 was successful in burning $569,180 worth of depegged 1Assets through Recovery.Exchange during this round. The team also examined 13 community proposals for the AAVE recovery and promoted a solution presented by BGD, a service provider contracted by the Aave DAO, and made minor adjustments to better align it with the strategies of the other burn partners. R1 has plans to refine this framework, put it to a community vote, and then proceed with implementation. R1 used the service fee to fund contract development, UI enhancements, and general communication management between Harmony users and the recovery process. Furthermore, R1 is actively assisting in the development of the forthcoming Tranq V2 governance framework and collaborating closely with the Tranquil leadership team. As of this round, the total amount of burned assets by R1 has reached $3,323,507.
At the conclusion of Round 8 in May, the Harmony Treasury had allocated a grand total of $1,050,000 across six rounds to its three burn partners. In total, an impressive $10,333,981.12 worth of 1Assets had been burned, with 120k going to Tranquil’s “bad debt”, showcasing the efficiency, determination, and progress of the Harmony Blockchain Recovery process. This accomplishment underlines the steadfast commitment of the Harmony community and its burn partners in addressing the challenges resulting from the Horizon Bridge hack.
As the core team continues to enhance the network and expand partnerships, the recovery partners remain focused and eager for community feedback. The recovery partners are committed to incorporating feedback and suggestions to improve their burn mechanism, further strengthening the Harmony ecosystem.
We anticipate the commencement of Round 9 during the first or second week of June.
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In other Recovery updates, the Recovery Validator is now under the supervision of the Harmony Community DAO. This transition will provide the CDAO with a new and sustainable revenue stream and a place at the validator table, facilitating feedback on the future of the ecosystem.
In the coming days, Hound Validator plans to share an update regarding the progress of the burning validators from Round 8. These five validators comprise the Burning Validator, EasyNode, Repegging Node, Tracker, and Recovery Validator.
