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Clarification Needed on LP Recovery Exclusion Post-Harmony Bridge Hack
I was a liquidity provider for Synapse Protocol when the breach occurred, holding a substantial amount in their Harmony 1USDC/1USDT pool. Because I didn't store assets directly in my wallet, I haven't been included in the ongoing R1 recovery process. Can you clarify—are LPs like myself going to be excluded from your final recovery plan? If so, could you explain the reasons?
DeFi participants initially bridged assets over the Horizon Bridge to Harmony, which was the catalyst for the liquidity provision. Why should individuals who passively held 1assets in their wallets receive compensation while LPs who provided liquidity and were actively engaged should be excluded? It's important for fairness and transparency that all stakeholders, including LPs, be considered in the recovery process to maintain trust in decentralized finance ecosystems and ensure equitable treatment for all contributors.
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AI Analysis
The opinion highlights concerns regarding the equitable treatment of liquidity providers (LPs) following a security breach in the Synapse Protocol, specifically related to the Harmony Bridge hack. The...
AI Recommendation
Given the concerns raised, it’s advisable for the recovery team to revisit their criteria for inclusion, explicitly clarifying whether LPs and other passive stakeholders will be compensated. Transpare...
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