Alpha Homora has released its fourth open letter to the community to resolve the cross-protocol bad debt issue between it and Iron Bank. In the letter, Alpha Homora proposed the following solution:
Iron Bank immediately stopped accruing interest;
2. Iron Bank must return the portion of Alpha Homora users’ deposits ($8,686,364.33) that exceeds the total debt ($30,689,988.09) to Alpha Homora users;
3. Iron Bank needs to return the 63 million ALPHA collateral provided by Alpha Homora;
4. Alpha Homora will work with its community to resolve the bad debt amount. If the first 3 steps can be successfully executed, Alpha Homora will propose some possible recovery plans.
Alpha Homora pointed out that the above plan means that the bad debts between Alpha Homora and Iron Bank will be transferred to Alpha Homora and its users. In the next 48 hours, Alpha Homora will initiate a vote to let the community decide whether to implement the plan. #BNB, #bitcoindifficulty, #ETH