beFTM is a good product for the Beefy DAO, with recurring revenue delivered to the treasury from both the initial 500K staked FTM from the Beefy Treasury and the delegation we received from beFTM stakers.
Over the past year, the market turmoil has led to people exiting FTM and less demand for FTM based liquid staking products. In addition, the yield for FTM validators has also declined per their passed proposal (https://fantom.foundation/blog/governance-vote-passes-to-adjust-staking-rewards/). This has had a negative impact on peg of beFTM and it has found home below peg organically as a perpetually locked asset.
This proposal is to start the firm deprecation of beFTM. This includes to stop the relocking of the beFTM validator stake starting on April 3, 2023. In 1 year we will be able to unlock all FTM from the validator and make it redeemable at 1 to 1 with beFTM.
As we approach beFTM unlock, we will work to deploy a new and improved beFTM v2 which will have better redeem capabilities.