Deprecate the WOO liquidity pool on Fantom

-Background- On the 6th of July 2023, cross-chain bridge protocol Multichain was compromised, entailing the unauthorized withdrawal of $125M of various assets to an unknown address. Among the assets withdrawn were 9,674,426 WOO tokens that were thitherto being used to back the equivalent number of WOO tokens issued by Multichain protocol in the Fantom ecosystem 1:1.

To contain the risk of these unbacked WOO tokens within the Fantom ecosystem, WOO liquidity was shortly removed from Stargate’s pools on Ethereum, BNB Chain, Avalanche, Polygon, Arbitrum, and Optimism. Instead, an alternative solution was implemented that enables all affected users to swap their unbacked WOO tokens out of Fantom to other blockchains via a service provided by WOO Network’s centralized exchange, WOO X.

-Proposal- Before the removal of WOO liquidity from Stargate Bridge, the WOO token was one of the most bridged assets behind blue chips like ETH and stablecoins. This proposal kindly asks that Stargate DAO deprecate the WOO liquidity pool on Fantom now that efforts are being taken to wind down the WOO token in the Fantom ecosystem. Provided the Stargate DAO should agree to this, WOO Network will redeposit WOO token liquidity to six of Stargate’s chains (Ethereum, BNB Chain, Avalanche, Polygon, Arbitrum, and Optimism), reinstating a consistent and sizable source of fee generation for the Stargate DAO.

The return of WOO liquidity to the Stargate Bridge will also be beneficial to WOOFi - the first DEX to integrate with Stargate Bridge to power one-click cross-chain swaps. While WOO token liquidity is absent, WOOFi cross-chain swaps can only route through Stargate’s ETH and stablecoin pools, hampering their ability to find the optimal path and best execution for WOOFi users.

-Execution- -WOO Network to remove all WOO liquidity in Stargate on Fantom -Stargate to deprecate the WOO pool and remove the option for users to bridge WOO tokens into or out of Fantom -WOO Network to add back WOO token liquidity on Ethereum, BNB Chain, Avalanche, Polygon, Arbitrum, and Optimism

-Summary- As part of efforts to wind down the WOO token in the Fantom ecosystem following the incident with Multichain protocol, we beseech the Stargate DAO to deprecate the WOO liquidity pool on Fantom. This will enable WOO Network to re-deposit WOO liquidity on six of Stargate’s chains and bring back what was a consistent source of bridging volume and fees for the Stargate DAO. In the event that WOO Network decides to revive WOO token on Fantom in the future, LayerZero bridge will be our first choice.