Fantom Pool Windup

Background

On May 24th Multichain announced that a “force majeure'' was impacting some parts of its service (Due to a technical error with Commonwealth previews the tweet will be available at the end of this thread). This creates a lack of clarity around what is happening with Multichain and the stability of anyUSDC, Fantom’s primary USDC asset.

At launch, Stargate included anyUSDC within its pools as anyUSDC was considered by the industry to be the “native” assets for Fantom. Currently, there are 11.4 million dollars worth of deposited LP into this pool, Fantom pools are currently effectively isolated from other Stargate pools.

Proposal

Stargate should disable the Fantom pools and pathways.

The technical steps for accomplishing this are:

• Set STG emissions on the Fantom pools to 0
• Disconnect the Fantom pools from every other pool
• Remove and unwind anyUSDC POL via Multichain, Then deposit the POL into the Ethereum USDC pool.
• Whitelist existing LPs to enable redemption of their LP out to any other chain (Throughout the voting process any LP can remove their LP and unwind their anyUSDC balance manually over Multichain, and it’s probably advisable to do so.)

In light of the disclosure by Multichain of a force majeure event risk mitigating measures should be taken. Going forward, Stargate should consider expanding bridging options for bridging options to Fantom users in other ways, including possibly via Hydra (https://commonwealth.im/stargatetoken/discussion/10403-stargate-v2).

Summary

To mitigate risk to Stargate and its liquidity providers, Stargate should eliminate the Fantom USDC pool and remove all DAO controlled funds from the pool.

Notes

The tweet referenced in "background":

https://twitter.com/MultichainOrg/status/1661443109019062272