Fei Protocol founder proposes ghosting Tribe DAO following hack repayment while Beanstalk relaunches

By Shashank Bhardwaj| Aug 22, 2022

Fei Protocol unveils plans to step back from Tribe DAO while Beanstalk "unpauses" operations

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Fei Protocol is still reeling from the attack on its decentralised finance platform which took approximately $80 million from a number of Rari Fuse pools. They have revealed their plans to offset the damage to their ecosystem by partly revoking participation from Tribe DAO and it seems that the community is divided.

Joey Santoro, the founder of Fei Protocol, unveiled this plan in a latest proposal, TIP-121: Proposal for the future of the Tribe DAO. The proposal outlines the organisation’s intentions to reimburse Fuze victims, set forth plans for asset redemption, the distribution of protocol-controlled value (PCV) assets that look over the liquidity and yield. “Upon completion of this proposal, and irrespective of whether the individual pieces of it fail or succeed, Fei Labs will no longer be participating in the Tribe DAO,” read the proposal.

The statement on their Discord channel for the Tribe community read, “The technical, financial, and potential future regulatory risks of continuing to develop within the Tribe DA are too high, especially in light of the heightened scrutiny of stablecoins. The Fuse hack puts the DAO in a vulnerable state, and the potential of future hacks or adverse macro conditions increases the risk of much worse outcomes.”

Fei Protocol has faced a ton of backlash from the community over this proposal. “I think trust has been broken, and I can’t believe such a vague proposal, probably overlooked by an army of blood-thirsty lawyers, will be in the user's favour,” one of the members said.

This is not the first move Fei protocol has made in response to the April 2022 attack. It previously offered the hacker a $10 million bounty for returning the assets through Twitter, but received no response.

Meanwhile, Ethereum-based algorithmic stablecoin project Beanstalk has announced its comeback after shutting down for four months due to a $77 million governance exploit. “Beanstalk has come out on the other end of this ordeal stronger than ever. It is a testament to the creditworthiness of the protocol and its potential to help realise a permissionless future,” stated Publius, the developer group behind the BEAN stablecoin and protocol.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash