Vires Finance Plan — Discussion Piece

After passing VIP-029 , the VIRES team wants to clarify the plan’s next steps for all users. We discussed in the last piece that more proposals would come and that each one is flexible based on community feedback. We hope that we can better gather and aggregate feedback by giving more lead time for each following proposal.

Here then is the entire plan of action to make all users whole as quickly as possible;

The Plan

  • VIP-028 — Reduce interest and give all users USDN vesting option (Approved)
  • VIP-029 — Unlock LP tokens (Approved)
  • VIP-030 — Add SURF token to vesting mechanics
  • VIP-031 — Introduce dynamic adaptive vesting limits
  • VIP-032 — Add New USDT/USDC markets
  • Begin marketing of successful crisis resolution and establishment of new markets protected from the liquidity crunch.

Why these are important

All these measures are to repay users as quickly as possible. The priorities remain to make everyone affected by the liquidity crunch whole, close off the bad debt-affected USDT/USDC markets from new investors, and start new markets unaffected and protected from the situation happening again.

VIP-028 — we lowered the interest enabling more repayments to feed into the platform’s liquidity rather than simply paying the interest. Giving all users the option to take a USDN repayment plan gives everyone certainty in the timeline they will receive their funds and a 5% bonus on top.

VIP-029 — would allow all locked LP token holders to unlock before their period is up. Given these tokens were locked at a time when a different strategy was being pursued, and lockers were supporting the platform in good faith, it is only fair they can unlock. With USDT and USDC markets all moved to legacy LP, token holders should also get the chance to enter into vesting just like everyone else.

VIP-030 — would add the SURF token to the vesting mechanics. This will contribute massively to the stability of USDN and therefore improve the guarantee of everyone’s repayment plan. The Backing Ratio is currently ~10%, meaning SURF is at a 90% discount. This gives users a significant opportunity to gain returns from the situation. The timeline for users opting for SURF could be less, as daily limits for converting to SURF would be higher than withdrawing the USDN.

VIP-031 — would introduce dynamic limits to vesting. We understand that the protocol deciding on the vesting limits is far from the decentralized model we all wish to be. However, it is necessary at this time, given the market conditions. We are working on a proposal to create dynamic limits to daily vesting based on the USDN peg. If the peg is strong and stable in an acceptable range, daily limits increase; if the peg is out of the acceptable range, daily limits decrease. This is a good solution as it gives users a way to understand the current health of their repayments; it also incentivizes good behavior while penalizing bad in a decentralized manner.

VIP-032 — would create new USDT and USDC markets unaffected by the liquidity crunch or the bad debt. Adaptive withdrawal, borrow limits, and non-borrowable collateral means new markets will be protected from a further liquidity crisis. This means we can return to marketing the platform as a better version of a lending protocol and help set new standards for lending across DeFi, as the only battle-tested lending protocol in the space.

DeFi is an experiment in financial markets. Problems need solving, but more often than not, those problems don’t make themselves known until afflicted by crisis. While difficult for us all, the situation here on Vires Finance is helping to improve the protocol and establish a better and safer model for other lending platforms to follow. Vires Finance is the only protocol to undergo such a severe crisis, and to get through it would demonstrate how powerful the decentralized model is. We hope the community can see that the long-term prospects of a battle-tested lending protocol are enormous, and your support is needed to get us there.

You can help improve this plan by joining the discussion and sharing your ideas here!

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Thank you for the insights in the successive measures you are planning to bring to vote in the DAO. Please, In case of unexpected market movements or unexpected exploits of new measures, keep communicating with the community. This will bring more trust and help recovery of the protocol.

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VIP-030: As long as we keep this OPTIONAL, i expect broad support.

VIP-031: I have suggested this before. Glad to see the concept moving forward.

VIP-032: We are not yet ready for this. MUCH more discussion is needed. When VIRES v2 is released, we cannot afford failure. This topic deserves it’s own thread. I suggest removing VIP-032 as the working title as it implies that we are close to release.

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I don’t see any measures done for the Vires token holders, who support the platform heavily and lost more than 70% of their investments and now locked in the system without any chance to return their investments. Why we are thinking about lp token holders but not Vires holders. We were scammed by changing the rules so many times.

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VIP30: it would be great if we could transfer part of our funds to Surf. E.g. I have several 10k’s of usdc still in the platform and I would be willing to put e.g. 10k towards Surf, put some in USDN vesting +5% and keep some in USDC

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VIP-028 — we lowered the interest enabling more repayments to feed into the platform’s liquidity rather than simply paying the interest. Giving all users the option to take a USDN repayment plan gives everyone certainty in the timeline they will receive their funds and a 5% bonus on top.

This is logical and that is why the drop to 2% was proposed, but it is not true that liquidity is being received. No one is paying their debt apparently, very lucky to have a 2% loan, the occupation in USDT/C should be decreasing, but it is not.

USDN vesting was paused since days too.

When we will can withdraw USDT/C @admin ?
When USDN vesting will be resumed? USDN will have to be at $1?

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VIP-032 indicates that the Vires team (Sasha) STILL refuses to accept that all of the problems on Vires originate from coding USDN to always equal $1 rather than the market price. The protocol would not need any of these interventions if USDN collateral suppliers could be liquidated properly. Continuing to have withdrawal limitations in the future will severely limit large deposits. Why would anyone deposit $1M if it takes 1000 days to withdraw it?

Quite frankly the owner of the 3PEE account (you know who) is still salty that the USDC and USDT supply got quickly pulled in April, ending his attempt to artificially pump WAVES with borrowed money. The protocol cannot be trusted ever again, unless the BORROWERS take on the risk (of liquidation), rather than putting the SUPPLIERS at risk (of never getting their deposits back).

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with the VIP-032 — would create new USDT and USDC, but how you manage the old market? there will be separately market or not?

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100% accurate. RIP Vires Finance

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Ok, you can migrate mine to the new markets and free up my funds. I am a supplier only too. I chose this platform because I had the impression my funds would be relatively liquid. I am very illiquid now.

I chose USDC as the most stable option with the intent to take out small amounts often but let the bulk continue to snowball. But my only option appears to take unnecessary risk by converting ALL of my funds to USDN.

There’s nothing fair about this and your brand/reputation is toast with all this.

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This feature is for vip-26 as the community chat written. Why VIP-28 vestors are in effect?
It can scam obviously,

Conversion to USDN is the only way for immediate withdrawal when you are presenting me such choice. Immediate gradual withdrawal is the only reason that i do the conversion. Now, you are pausing vesting. This is even worse than keeping USDT and USDC without withdrawal. You set me up !

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Guys, tell me if I’m wrong:

  1. LP_tokens
    a. Import is paused
    b. Redeem is paused
    c. Export is paused (when it has been voted?)

  2. Supply
    a. USDC Supply is paused
    b. USDT Supply is paused
    c. USDN Vesting is paused

  3. Collateral
    a. USDC is prohibited collateral
    b. USDT is prohibited collateral

  4. ViresToken
    a. very low price
    b. very low interests for locked gVires

About the last voting. What it was for if users can’t export and sell their “fairly” unlocked LP_Tokens?
Is there any working function in the Vires now?

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No, no there is not. It is a completely defunct platform. They will attempt to resuscitate it by “resetting” the platform. Nobody tell them, that’s not how money works lol.

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it’s all paused… waiting for another reset proposal with 0% APY and with the goal of attract new funds…

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In telegram appears many people agree to exit before even sustaining a loss. I think is fair since someone can be really in need of.money. Is true the main idea is to make exit everyone without losses, but if someone can’t wait is fair let them go even with a voluntary loss if exit before resolution by the team. After all all investments involves risks and for example in a real estate investment I’m exit after 5 years with 50% loss. So a similar chose would be a benediction compared to other kind of investments
how to calculate the loss : there are many methods : e.g. Calculating dinamically on current peg. So 50% comprehensive of 10% of loss due to peg, Calculated in the moment of withdraw. So for example now should be 10% due to peg and 40% due to voluntary loss to exit before resolution by team. Should not difficult for the team prepare a mask where all these calculations are done in real time…or to avoid strange calculations, exit without calculating the loss of the peg. That will sum to loss voluntarily. So exit now means 50% voluntarily + 10% due to peg. This has to be voted of course.
First the method of calculation (with or without embedded depeg) and second the way to calculate loss, if by time -e.g
now, 50% 1 month from now 40% ,2 months from now 30%- or by quantity requested. 100% requested 50% loss -75%.requested 40% loss on the part requested -50% requested 30% loss on the part requested -25% requested 20% loss on the part requested for example.

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you can export lp token and sell it on the market… i’m wrong?

So I could take my USDCLP and sell it freely? At what kind of discount though?

Yeah they have that blocked any which way you try it appears. Just as expected.

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you are now on the rollercoaster ride of rugpull.finance. bite the pillow, the vires team is going to do what they want with you

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