Fei Protocol founder offers to ghost Tribe DAO after hack refund as Beanstalk relaunches

Fei Protocol founder offers to ghost Tribe DAO after hack refund as Beanstalk relaunches

Fei Protocol reveals plans to withdraw from Tribe DAO as Beanstalk ‘halts’ operations

By Shashank Bhardwaj

Image: Shutterstock

Fei Protocol is still reeling from the attack on its decentralized finance platform which took around $80 million from a number of Rari Fuse pools. They revealed their plans to compensate for the damage done to their ecosystem by partially revoking Tribe DAO’s participation and it seems the community is divided.

Joey Santoro, the founder of Fei Protocol, unveiled this plan in a final proposal, TIP-121: Proposal for the Future of the DAO Tribe. The proposal outlines the organization’s intentions to reimburse Fuze victims, outlines asset buyback plans, protocol-controlled value (PCV) asset distribution that monitors liquidity and yield. “Once this proposal is completed, and regardless of whether individual elements thereof fail or pass, Fei Labs will no longer participate in the Tribe DAO,” the proposal reads.

The statement on their Discord channel for the Tribe community reads: “The technical, financial and potential risks of further development within the DA Tribe are too high, especially in light of increased surveillance of stablecoins . The Fuse hack puts the DAO in a vulnerable state, and the potential for future hacks or adverse macro conditions increases the risk of much worse outcomes.

Fei Protocol faced a ton of backlash from the community over this proposal. “I think the trust has been broken, and I can’t believe that such a vague proposal, probably ignored by an army of bloodthirsty lawyers, is in favor of the user,” said one of the members.

This is not the first action Fei Protocol has taken in response to the April 2022 attack. It had previously offered the hacker a $10 million bounty for returning the assets via Twitter, but only received no answer.
Meanwhile, Ethereum-based algorithmic stablecoin project Beanstalk has announced its return after being shut down for four months due to a $77 million governance exploit. “Beanstalk has emerged from the other end of this ordeal stronger than ever. It’s a testament to the protocol’s solvency and its potential to help realize a permissionless future,” Publius, the developer group at the origin of the stablecoin and the BEAN protocol.
The writer is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

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