DeFi protocol Aevo is under fire for its proposed recovery plan following a $2.7 million exploit involving old Ribbon Finance vaults. The plan suggests allowing withdrawals with a 19% haircut, attributing the decision to a $400,000 loss by the DAO and the inactivity of deposits over the past two to four years. Critics argue that the proposal unfairly penalizes dormant accounts and liken it to Ponzi schemes.
The backlash intensified as Aevo restricted public replies on X to verified accounts, which many see as an attempt to stifle criticism. Despite the controversy, Aevo maintains that the plan is designed to benefit active users and could potentially lead to a full recovery if inactive accounts remain untouched.
Aevo Faces Criticism Over Ribbon Finance Exploit Recovery Plan
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
