eIP 44: Fast-track - Convert FTT reserves to ETH

Title: eIP 44: Fast-track - Convert FTT reserves to ETH

Authors: @Raslambek

Submission Date: 18/01/23

Simple Summary

This proposal aims at converting FTT market reserves into ETH to save Protocol's assets and move them to the WETH market reserves.

Motivation

FTT is a native token of the FTX crypto-currency exchange that on 11 November filed for bankruptcy. On November 14 the office of the United States Attorney for the Southern District of New York began an investigation into FTX's collapse.

Since then, the FTT price has dropped 10 times, stabilizing at around 2$ per token for the time being. This affected the FTT market reserves for 6,64K FTT. The current value of the reserves is around $15K in comparison to $150k before FTX collapsed.

Unlike other dramatic decrease in price of assets that is not unusual for the crypto industry, FTT's parent company FTX filed for bankruptcy meaning that it will cease to exist. Therefore, the FTT price will eventually go to 0.

Against this background, although the FTT market still de facto exists, it represents an artificial gambling-like asset with no company behind it.

In this regard, it is proposed to convert accrued FTT market reserves (6,64K) to ETH with the aim to save protocol's money.

Yes - Convert FTT reserves to ETH

No - Do nothing