DIP-10: Treatment of Remaining Asset in Borrow Lend

I understand the rationale behind converting the remaining spot assets into USDT and establishing a recovery reserve pool.

However, I believe the current discussion is focused mainly on how to redistribute the remaining assets, rather than further addressing how the protocol itself intends to meaningfully support users’ long-term recovery.

For many affected users, the current remaining asset value represents only a small fraction of their original balances. Converting existing assets into stablecoins may help stabilize accounting and settlement mechanisms, but by itself, it does not materially improve recovery outcomes for users.

I believe the discussion should also urgently include clearer recovery mechanisms, such as:

  • Whether a portion of the protocol’s past accumulated revenue should also be allocated into the recovery pool

  • What percentage of future protocol revenue will continue to be directed toward the recovery pool

  • The scale of support from ecosystem partners — currently, including Tether and strategic partners, there has not yet been a clear indication of how much capital or what percentage will be contributed to the recovery pool

  • Whether recovery incentives tied to the protocol’s long-term growth can be introduced, allowing affected users to participate in future value creation

From a user perspective, recovery is not only about immediate settlement mechanics, but more importantly whether the protocol is willing to share responsibility with affected users in rebuilding the lost value.

I believe that a clearer and longer-term recovery commitment would also help strengthen community trust, user retention, and overall confidence in the protocol relaunch.

2 Likes