This proposal is the next step following the recent community sentiment check. During the last weeks, the community vividly discussed potential remediation steps to progress away from the current founder deadlock in a way that is equitable to all VSTA holders. These are the options that emerged and are submitted for binding approval and execution.

Choices Summary

Choice 1 — Proposal VSP-5

Objective

Sunset the token, and allow runway for Vesta Finance remaining team funded by Vesta Finance's treasury.

Details

• Vesta Finance runway: $1.5M
• Token redemption: Every VSTA can be redeemed for a pro-rata share of the treasury (minus $1.5M). As of today, every VSTA would be redeemed for $0.439
• No expectation of future equity for VSTA holders

Please note that the proposal's author tried to secure equity for current VSTA holders in the future version of Vesta developed by the remaining team, however, leadership couldn't "comment" on the proposal. Therefore, Proposal VSP-5 doesn't secure any equity or token allocation for VSTA holders. Proposal VSP-5 is detailed later in this snapshot.

Choice 2 — Proposal VSP-6

Objective

Unwind the project.

Details

• Vesta Finance runway: No additional runway
• Token redemption: Every VSTA can be redeemed for a pro-rata share of the total treasury. As of today, every VSTA would be redeemed for $0.507

Proposal VSP-6 is detailed later in this snapshot.

Choice 3 — Try Again

Objective

Ensure that there is a way to revert to the drawing board for a new proposal if a particular issue has been overlooked by the two prior proposals presented.

Choice 4 — Do Nothing

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Voting Rights

To make the result truly reflect the opinion of the community, team tokens should not be able to vote. But anyone else, including advisors, angels, public sale participants, secondary market participants, and other vested VSTA tokenholders are able to vote in this matter.

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Proposal VSP-5

Summary

Vesta Finance’s remaining team, led by Mikey, receives $1.5M of runway to deliver a new oracle-less lending protocol. VSTA holders have unlimited time to exchange their VSTA for a pro-rata share of the total Vesta Finance treasury, minus $1.5M. VSTA token will be sunsetted, and there will be no future equity for VSTA holders. Vesta Finance will be discontinued and the product sunsetted.

tldr:

• $1.5M of runway for the remaining team to realize the vision of oracle-less lending
• Unlimited redemption period during which all circulating VSTA (including vested VSTA) can be exchanged for a pro-rata share of the Vesta Finance treasury, minus $1.5M (corresponding to the VSTA book value, distributed in USDC and ARB)
• Sunsetting of Vesta Finance and complete product discontinuation

Execution

Upon passing of this proposal:

• Pause vesting contracts for team and advisors, and burn their unclaimable VSTA. Accelerate angel investors vesting (~994,936 VSTA, as of today)
• Burn all treasury owned VSTA
• Withdraw all protocol-owned liquidity (VSTA-ETH)
• All other treasury assets aside from USDC and ARB will be sold to USDC
• Deploy a redemption smart contract, funded by the Vesta Finance treasury, that gives the ability for users to burn 1 VSTA in exchange for x USDC and y ARB
• Deploy a front-end to allow users to interact with the redemption smart contract
• Unlock all VST in the stability pool
• Halt minting of VST and only allow closing of positions
• Host frontends for closing positions and redemptions on IPFS
• Transfer of $1.5M to Vesta Finance’s remaining team multi-sig, funded proportionally in USDC and ARB relative to the total treasury value repartition

Link to the proposal

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Proposal VSP-6

Summary

VSTA holders have unlimited time to exchange their VSTA for a pro-rata share of the total Vesta Finance treasury. Vesta Finance will be discontinued and the product sunsetted.

tldr:

• Unlimited redemption period during which all circulating VSTA (including vested VSTA) can be exchanged for a pro-rata share of the Vesta Finance treasury (corresponding to the VSTA book value, distributed in USDC and ARB)
• Dissolution of Vesta Finance and complete product discontinuation

Execution

Upon passing of this proposal:

• Pause vesting contracts for team and advisors, and burn their unclaimable VSTA. Accelerate angel investors vesting (~994,936 VSTA, as of today)
• Burn all treasury owned VSTA
• Withdraw all protocol-owned liquidity (VSTA-ETH)
• All other treasury assets aside from USDC and ARB will be sold to USDC
• Deploy a redemption smart contract, funded by the Vesta Finance treasury, that gives the ability for users to burn 1 VSTA in exchange for x USDC and y ARB
• Deploy a front-end to allow users to interact with the redemption smart contract
• Unlock all VST in the stability pool
• Halt minting of VST and only allow closing of positions
• Host frontends for closing positions and redemptions on IPFS

Link to the proposal

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Treasury Data & VSTA Circulating Supply

Currently, the Vesta Finance treasury holds the following assets (links to treasury wallets below):

• 7,951,938 USDC & USDT, valued $7,951,938.85
• 2,713,675 ARB, valued $2,211,026 as of today
• 274.00 ETH, valued $446,998 as of today
• 315,412 VST, valued $315,412 as of today
• 33.51 gOHM, valued $100,234 as of today
• 13,923.33 BAL, valued $45,529 as of today
• Minus liabilities

The total treasury assets value is $11,071,140 as of today.

Are considered treasury assets the following addresses:

• (a - Admin) Link - DeBank (0x4a4651b31d747d1ddbddadcf1b1e24a5f6dcc7b0)
• (b - Treasury) Link - DeBank (0xc9032419aa502fafa107775dca8b7d07575d9db5)
• (c - Protocol Owned Liquidity) Link - DeBank (0x5f153a7d31b315167fe41da83acba1ca7f86e91d)
• (d - Additional Team Controlled Wallet) Link - DeBank (0xb891586271c15816225ecced3bdea5ac463a2c4e)
• Bundle view:Link - Zapper Bundle

The current circulating supply of VSTA is:

• 100,000,000 VSTA Total Supply
• (-) 71,945,131 VSTA in the treasury (a)
• (-) 2,884,695 VSTA in the admin (b)
• (-) 640,803 VSTA in the protocol-owned liquidity (c)
• (-) 3,704,440 VSTA unvested (6,245,205 VSTA in the vesting contract - 2,540,765 VSTA claimable)
• (+) 994,936 VSTA to be vested for angel investors

The VSTA circulating supply is 21,819,866.40 as of today.

In case of VSP-5 approval, this puts each VSTA book value at $0.439 as of today ($9,571,140 / 21,819,866.40).

In case of VSP-6 approval, this puts each VSTA book value at $0.507 as of today ($11,071,140 / 21,819,866.40).

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Timeline

In the event of either VSP-5 or VSP-6 being voted in, the team led by the multi-sig executors will ensure timely consolidation of all treasury assets including miscellaneous positions such as StakeDAO into USDC whilst maintaining ARB exposure. Large positions can be TWAPPED (rather than market sold) over a reasonable number of days to ensure best execution for the DAO. Assets unlisted in this proposal that are owned by the Vesta Finance treasury shall be included in the total Vesta Finance treasury.

Once the vote passes, the team will spend two weeks building the frontends and smart contracts for the redemption before starting the redemption.

At the same time as the redemption period, the remaining team will begin sunsetting Vesta Finance.