Resupply Releases Recovery Plan Proposal, 6 Million reUSD Bad Debt to Be Burned via Insurance Pool

Foresight News reports that the stablecoin protocol Resupply has released a recovery plan proposal. According to the proposal, the Resupply protocol suffered a hacker attack resulting in 10 million reUSD becoming bad debt. The Resupply Treasury, Convex Treasury, and C2tP have paid 2,868,832 reUSD, leaving a total outstanding bad debt of 7,131,168 reUSD.

6 million reUSD of bad debt will be burned through the insurance pool, accounting for approximately 15.5% of the current 38.7 million reUSD in the insurance pool. The protocol will continue to bear the remaining bad debt to reduce the amount owed by the insurance pool. In total, this reduces the original bad debt amount of the insurance pool by 4 million reUSD. The remaining 1,131,168 reUSD in bad debt will be gradually repaid by the DAO through future revenue sources (including but not limited to protocol fees and/or potential RSUP OTC sales plans), with these revenue sources to be determined later by the finance or governance departments.