Resupply Protocol Faces $10 Million ReUSD Bad Debt, Community Proposes Remedial Measures

According to ChainCatcher, the official Resupply protocol team has initiated a remediation proposal within the community to address the $10 million ReUSD bad debt issue encountered earlier this week. The proposal outlines a set of governance actions aimed at eliminating the protocol's bad debt and providing retention rewards for affected users.

The first phase of measures includes burning $6,000,000 in ReUSD bad debt from the insurance pool, which accounts for 15.5% of the 38.7 million reUSD in the pool, and repaying the remaining $1,131,168 in bad debt through a mix of future revenue sources. At the same time, the proposal also includes shortening the voting period to accelerate the decision-making process and offering an IP retention plan for insurance pool depositors, incentivizing them to stay in the pool with additional RSUP token rewards.