BIP-115: Terminating sFTMx on Fantom Opera

Proposal

Withdraw FTM from the sFTMx contract, bridge it from Opera to Sonic as S, and allow users to claim their tokens in S until the end of 2026.

Motivation

Sonic Labs has announced that Fantom Opera will be sunset, and any bridging from Opera FTM to Sonic must be completed before June 30, 2026 (https://blog.soniclabs.com/sonics-successful-network-migration-what-this-means-for-fantom-opera/).

sFTMx on Fantom is part of the Beets product suite. At the time of writing, the sFTMx contract holds approximately 1.7M FTM tokens. After June, users will no longer be able to bridge their tokens to Sonic and may permanently lose access once Fantom is shut down.

It is possible to upgrade the sFTMx contract to enable withdrawal of the underlying FTM. This BIP proposes the following actions:

1. Disable deposits to sFTMx
2. Announce the termination of the sFTMx and give users 2 weeks to withdraw manually
3. Pause undelegating and withdrawals of the sFTMx contract
4. Upgrade the sFTMx contract
5. Take a snapshot of the holders and pending withdrawals and transfer out the underlying FTM
6. Bridge the FTM from Opera to Sonic as S tokens
7. Deposit the S tokens into stS to generate additional yield
8. Store the stS tokens in a separate multisig
9. Allow users to claim their tokens until end of year

Once the FTM is withdrawn, a snapshot of sFTMx holders and their claimable amounts will be taken. Users will be able to submit a claim for an equivalent amount of S tokens on Sonic on a 1:1 basis, with a minimum claim amount of 1 S. Claims will be processed manually on a monthly basis.

This BIP proposes a claim window of additional 7 months, with the final claims processed at the end of December 2026. After this period, any unclaimed tokens will be transferred to the DAO treasury.

Impacts/Risk Assessment

This proposal authorizes upgrading the sFTMx contract and withdrawing up to approximately 1.7M FTM (~$80k at current prices). While the upgrade and subsequent actions are relatively straightforward, they still carry inherent risks.

We will not be able to snapshot LP positions. Based on the holder info here https://www.oklink.com/fantom/token/0xd7028092c830b5c8fce061af2e593413ebbc1fc1?address=0x0b2e90c831626a65a26f75153be54aeaaeeb8363 less than 100k sFTMx are currently sitting in LPs. Users that have sFTMx in LPs won't be able to claim back.

A user could sell the sFTMx on the market after the snapshot was taken and still file a claim for stS based on the snapshot. The user would basically get back stS 1:1 on Sonic plus receive the profit from selling sFTMx on the market. Since liquidity for sFTMx is very thin, the opportunity is small.

Additionally, users who could previously claim FTM will instead claim S tokens (on a 1:1 basis) after this BIP is executed. There may be price discrepancies between FTM and S at the time of claim.

Specification/Execution Plan

If this BIP is approved, deposits to sFTMx would be disabled and the Beets contributors will prepare the sFTMx contract upgrade for the FTM withdrawal. Contributors will announce the upgrade and provide users with at least two weeks’ notice to manually withdraw if desired. After this notice period, the proposed actions will be carried out.