Fluid transfer protocol position settlement Resolv bad debt causes controversy, with the community claiming it “uses user liquidity to cover bad debts”

Golden Finance reported that on May 18, Curve founder Michael Egorov expressed doubts about Fluid’s latest governance proposal. The proposal would transfer fGHO and iETHv2 positions from the protocol treasury to the team’s multisig, in order to repay bad debts left over from Resolv’s de-pegging. Aerodrome community member jpn memelord believes the operation was insufficiently communicated and indirectly changed the risk exposure of USDC/USDT depositors—effectively using user liquidity to cover the bad debts. In response, the Fluid team said this is a normal technical operation to consolidate the settlement of thousands of Resolv-related debts; the total amount of protocol assets remains unchanged; all steps are within the governance framework; and the proposal was prepared in advance. This year in March, the Resolv protocol was attacked via signature infrastructure, resulting in the malicious minting of approximately $80 million in unsecured USR stablecoins, which caused USR to severely de-peg. Fluid, meanwhile, exposed around $21 million in bad debt due to factors including oracle price lag.