Resupply Announces Recovery Plan Proposal: 6 Million reUSD Losses to be Covered by Insurance Pool

BlockBeats News, June 29, Resupply released a Recovery Plan Proposal with a 3-day voting period. The proposal stated that earlier this week, the Resupply protocol was hacked, resulting in 10 million reUSD becoming irrecoverable. The stolen funds are still on-chain, and Resupply is monitoring the situation and taking necessary actions. Resupply Treasury, Convex Treasury, and C2tP have paid 2,868,832 reUSD, leaving an outstanding bad debt of 7,131,168 reUSD.

The proposal suggests:

6,000,000 reUSD of bad debt will be burned through the Insurance Pool, representing approximately 15.5% of the current 38.7 million reUSD in the Insurance Pool;

The protocol will bear ongoing bad debts to reduce the Insurance Pool's outstanding debt. This results in a total reduction of 4 million reUSD from the original bad debt in the Insurance Pool;

The remaining bad debt (1,131,168 reUSD) will be gradually repaid by the DAO through future revenue sources (including but not limited to protocol fees and/or a potential RSUP OTC sales plan), which will be decided by the Finance Department or Governance later.

Previously, Onekey founder Yishi, when advocating for rights protection, stated that the Resupply team shifting losses to the Insurance Pool depositors showed a lack of responsibility. The purpose of the Insurance Pool is to cover Black Swan events and market risks, not internal negligence. Additionally, the Resupply team did not preemptively state in the protocol that the Insurance Pool could absorb losses caused by team errors.