As per Bitcoin.com, Aevo, formerly known as Ribbon Finance, has drawn criticism for its proposed resolution to a legacy vault exploit that drained $2.7 million from outdated smart contracts. The protocol plans to allow withdrawals at a 19% haircut, citing the DAO's forfeiture of $400,000 and the inactivity of large deposits over two to four years. Critics argue the plan unfairly penalizes dormant accounts and resembles Ponzi scheme tactics. Aevo restricted public replies on X to verified accounts, further fueling backlash. The team claims the proposal prioritizes active users and allows for potential full recovery if dormant accounts remain inactive.
Aevo Faces Backlash Over Proposed Recovery Plan for Ribbon Finance Exploit
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Summary
Aevo, a DeFi protocol, faces backlash over its proposed recovery plan for a $2.7 million exploit from old Ribbon Finance vaults. The protocol wants to allow withdrawals at a 19% haircut, citing a $400,000 DAO loss and inactive deposits over two to four years. Critics say the plan unfairly targets dormant accounts and resembles Ponzi tactics. Aevo limited public replies on X to verified accounts, worsening the response. The team says the plan favors active users and could lead to full recovery if inactive accounts stay untouched.
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