Good Day. Current Status and New Plan about COFFIN Finance
We stand here, resolute,
We have something we would like to share. Currently we are facing issues similar to that of IRON Finance.
Iron Finance bank run stings investors - A lesson for all stablecoins?
The cryptoverse has been overrun with negative events lately. One of the most recent ones was the Iron Finance bank run…
As noted in our original documentation, when a partially collateralized stable token falls below PEG, there is always a risk of a hyper inflationary event. (We have mentioned the possibility of such a “death spiral” in those documents..), It’s not a bug, neither an exploit.
We have anticipated to experience similar issues to that of IRON Finance, pre-eminently from the very beginning. We devised and created measures to try and prevent it.
Regretfully, our efforts were not enough, the precaution could only partially halt the effects of the said issues.
2 Coffin Tokens + 1
The total planned emission of COFFIN token from farm is 100,000,000 COFFIN. The redeem function can mint additionally…
Fortunately, the strategic and well thought placement of our circuit breakers is the reason the protocol is still standing right now..
We cannot assure you of anything at this moment, the danger is real, and the risk is still critical. Please, do not take risks from which you may or may not recover.
Increasing COFFIN transfer tax might cause CoUSD’s PEG to fall at a much quicker pace.
The time has now come where we must begin to reconsider multiple things. Even the very use of our own entire systematic structure and use of contemporary tokenomics.
If we fail to decide on an immediate solution looking forward and into the future there is a fair chance that the protocol could come to an ultimately sad and untimely end.
Settings Change, and Prevention of the poor arbitrage loop secured for now.
We know it has been rough, we’re up against challenges, which is critical, and we, the developers and founders, are…
Even through many changes and the deepest efforts, we may not be able to save the protocol at all.. Though, what is the value of an unstable stablecoin that has lost its original identity and purpose?
With that being said, we have concluded that these actions must occur:
- An immediate, but temporary, disabling of the redeem function, (for a minimum of 14 days).
We have devised a plan of action as follows:
- The prioritization of a governance token, xCOFFIN
- We will keep the same tokens, COFFIN and CoUSD. The only thing that will change is tokenomics.
- The preparation of a proposal to update and improve the current tokenomics.
The proposal may include, but are not limited to:
- Bonding mechanisms. e.g., ( https://docs.olympusdao.finance/main/basics/bonding )
- The dynamic and incremental fluidity of multiple intrinsically rewarding and incentivized, collateralized stabletokens as opposed to solely FTM.
- A new road towards success.
- A secondary IDO, to raise funds if needed.
A significant portion of our community members, and users alike, have taken notice of the seemingly clear and present dangers, unpreventable within our current tokenomic structure and have made remarks requesting the temporary disablement of our redemption and reward mechanism. They have reached out to us both privately and publicly.
On the other hand, because the redeem function is disabled, this could cause CoUSD to crash alongside COFFIN.
These thoughts were taken under very heavy consideration.
Not only will we need to deeply consider the impact potentially imposed. This may actually cause COFFIN and CoUSD to collapse. But we need to try and move forward.
There are other concerns. It’s about voting power and finances.
Due to the effect of such redeem inflation, and no dev/marketing reward of our V1 farms both development and marketing funds had stopped drawing the necessary resources to carry on let alone with our daily duties, but even down to the power to place a vote ourselves.
After our original presale, there were some payments made in COFFIN for marketing and advertising incentives, though the executive and development teams have received only very little COFFIN for test purposes from the appropriate development fund set aside for such stipends. All other expenses paid directly by the founder with other contributions made by both members of the team and by the members of our incredible community. So, to continue on in the longevity of the protocol we ask, even while governance forms and starts to build its own identity, to please allow us, the development and executive teams to continue making proposals for at least one month longer while allowing us the appropriate time to finish and enact this new, fully functioning roadmap to propel us towards greater days, cohesively and as one strong unit.
This consideration would prove an immeasurable amount of gratitude and again, the plan here as drafted is not concrete. We are still considering contingencies and are willing to hear from the community at large. We have reached critical mass, and we believe in this new direction of tokenomics, while maintaining a fully decentralized currency, partially collateralized token, shared amongst the community and all who interact with it.
Ever more excitement and vigor.
Yet even taking such a leap of faith , we believe we must only move forward or risk moving nowhere at all. While we put our best foot forward, please invest with caution as we can only guarantee our dedication and hard work but not the outcome.
With an extension of all that we have, and one request of grace,
We thank you sincerely,
The Team of Coffin Finance