Roadmap for the Moonwell Community on Nomad Incident Recovery

Hi @cryptocurious,

Liquidators are rational actors and won’t liquidate a position unless it is profitable to do so. The Nomad bridge exploit led to a rapid devaluation of Nomad asset collateral, meaning that although some positions are undercollateralized and technically liquidatable, a liquidator may not choose to do so as the borrowed assets are worth more than the collateral (seized) assets. It’s important to note that Nomad has recently redeemed some of its funds, and now asset suppliers have the option to withdraw their assets and engage in the Nomad redemption process, which includes KYC procedures. We believe that the ultimate solution is still ceasing the bad debt associated with Nomad assets and recovering them, thereby mitigating further complications.