Fei Protocol founder proposes ghosting Tribe DAO following hack repayment

Refuting TIP-121, members of the community questioned the lack of timelines and hard numbers within the proposal.

An attack in April 2022, which drained off nearly $80 million from various Rari Fuse pools, required the decentralized finance (DeFi) platform Fei Protocol to come up with a solution that minimizes damage to the ecosystem. Fei Labs’ latest proposal, which partly recommends revoking participation from Tribe DAO, received mixed sentiments from the community.

Fei Protocol founder Joey Santoro announced the latest proposal, TIP-121: Proposal for the future of the Tribe DAO, revealing the company’s intent to reimburse Fuze victims. It also details plans for asset redemption and the distribution of protocol-controlled value (PCV) assets that manage the liquidity and yield.

I hope this proposal resonates with the community and thank you for your support.https://t.co/RjpS9j4x2H

— Joey ’s ERC-4626 (@joey__santoro) August 19, 2022

Members of the community questioned the lack of timelines and hard numbers within the proposal.

*A snippet of the proposal TIP-121. Source: tribe.fei.money*

One of the members, onigiri, stated:

“I think trust has been broken, and I can’t believe such vague proposal probably overlooked by an army of blood-thirsty lawyers will be in the users’s favor.”

Fei Protocol previously offered the hacker a $10 million bounty for returning the $80 million worth of assets, which received no response from the hacker.

We are aware of an exploit on various Rari Fuse pools. We have identified the root cause and paused all borrowing to mitigate further damage.

To the exploiter, please accept a $10m bounty and no questions asked if you return the remaining user funds.

— Fei Protocol (@feiprotocol) April 30, 2022

While seeking a responsible direction that reduces risk, the protocol intends to defend the FEI peg without the need for governance. “Upon completion of this proposal, and irrespective of whether the individual pieces of it fail or succeed, Fei Labs will no longer be participating in the Tribe DAO,” read the proposal.

On the positive side, Ethereum-based algorithmic stablecoin project Beanstalk Farms relaunched just four months after shutting down following a $77 million governance exploit.

Today, Beanstalk Farms is thrilled to announce that Beanstalk has been Unpaused on the one year anniversary of its initial deployment.https://t.co/HxZmwWksZe

— Beanstalk Farms (@BeanstalkFarms) August 6, 2022

“Beanstalk has come out on the other end of this ordeal stronger than ever. It is a testament to the creditworthiness of the protocol and its potential to help realize a permissionless future,” said Publius, the developer group behind the BEAN stablecoin and protocol, speaking to Cointelegraph.