Updates on DEI Bonds

bDEI / DEI LP has been taken offline

On 04.09.2022, we have taken the bDEI/DEI swap offline to reduce the massive IL risk people were facing, we also started reducing the overall rewards (across all of staking pools).

The rationale behind the closing of the bDEI LP pool

The pool puts users at a massive risk of suffering a permanent loss until their maturity date arrives.
LPs have already suffered IL up to 60% and to limit the increasingly greater imbalance that will be suffered going closer/after the redemption of bDEI has started.

TL:DR

In order to mitigate losses the bDEI LP pool was closed and snapshots taken. (we advice everyone to facilitate no more OTC / trades of bDEI or NFTs.)

What was the reason for the pools in the first place?

The pool was created for legacyDEI <> bDEI exposure. After the migration to a new DEI, the pool served no purpose anymore, and the risk of people suffering immense IL outweighs the rewards.

When was the snapshot taken?

The first snapshot was taken on 02.09.2022. Another one was taken on 09.09.2022.

The different type of bDEI Holders:

People that sold bDEI

There is -1,268,825.96 bDEI that was completely sold.

“IL-affected” users

“IL-affected” users are those that have suffered IL and have too much NFT.

important note:
if you bought bDEI AFTER this announcement was made, the amount could not be credited.

Users with not enough NFT we will call these “nonNFT-bDEI” users.

“nonNFT-bDEI” users are those that have bought bDEI directly from the LP pool accidentally without creating an NFT in the process.

important note:
if you bought any bDEI NFT AFTER this announcement was made, the amount could not be credited.

What options do you have as nonNFT-bDEI or IL-affected user?

Wait until protocol surplus is generated &stake your bDEI to get staking rewards for it in the form of vDEUS.

What about the DEI part of your LP provided amount?

We will also give users that provided LP the chance to move their DEI portion (even without NFT) to vDEUS 2:1.
When you already migrated you will be able to double your vDEUS.

How much surplus can be expected?

We will start using the excess DEI to seed initial liquidity on v3 & explore other exogenous yield opportunities to create an immediate surplus for nonNFT bDEI holders so they will be able migrate at the end of the period of the bDEI maturity, which is the 8th june in 2023.

Examples of swapping to 1:2 vDEUS,

Everyone who is a nonNFT-bDEI or IL-affected user will be able to swap his missing amount to vDEUS at a 1:2 rate (we will create an frontend for this in the next 30 days.

What next?

when will I be able to migrate bDEI, or swap my DEI to vDEUS?

We are planning to launch the frontend with all the above mentioned features in october, as a manual processment of these edge cases is a lot, in total we have been contacting 50 people whereof only 10% actually were interested in swapping to vDEUS at a 2:1 rate.

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