Fei Protocol Founder Proposes Ghosting Tribe DAO After Hack

Fei Protocol founder proposes ghosting Tribe DAO after hack repayment, while members of the community question the lack of timelines and hard numbers in the proposal.

Fei Protocol Founder Proposes Ghosting Tribe DAO

An April 2022 assault that stole approximately $80 million from several Rari Fuse pools compelled the decentralized finance (DeFi) platform Fei Protocol to devise a solution that minimized ecosystem harm. The community has varied feelings about Fei Labs’ recent proposal, which partly proposes withdrawing membership from Tribe DAO.

TIP-121: Proposal for the Future of the Tribe DAO, stated Fei Protocol founder Joey Santoro’s latest proposal, outlining the company’s intention to pay Fuze victims. It also discusses asset redemption plans and the distribution of protocol-controlled value (PCV) assets, which manage liquidity and yield.

The past months have been difficult for the Tribe DAO. These challenges and outcomes were not what anyone hoped for.

After deep consideration, Fei Labs is proposing the following after considering all stakeholders. We believe this is the responsible path forward. pic.twitter.com/TbzWeCdhEr

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

Members of the community questioned the proposal’s lack of timetables and specific data.

Onigiri, one of the members, 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 had offered the hacker a $10 million reward for recovering the $80 million in assets, but the hacker did not respond.

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

The agreement strives to protect the FEI peg without the necessity for control, while seeking a sensible orientation that decreases risk. Fei Labs will no longer be participating in the Tribe DAO upon completion of this proposal, regardless of whether the various portions of it fail or succeed – the proposal stated.

The Motivation Behind The Proposal

The motivation behind the proposal is apparently the challenging macro environment and the specific challenges such as Rari Capital’s Fuse hack that placed the Tribe DAO in a “suboptimal state”. The proposal also stated that any of the technical, financial, and future regulatory risks that are mounting could eventually cause the project to be far worse than its current state.

In a subheading called “Final Redemption” it (the Proposal) stated that as the TRIBE tokens are redeemed it is crucial that no governance powers remain because this would empower stragglers to riad the remaining PVC.

On the Other Side

On the other side, Beanstalk Farms, an Ethereum-based algorithmic stablecoin project, resurfaced barely four months after being shut down due to a $77 million governance hack.

“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.

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