Updated Sep 15: changed runway from $2m to $1.5m
A community-driven vote has opted for the option of rage quit where some runway is reserved for the team. This proposal details how it could be done.
- Unlimited redemption period at ~$0.46 per VSTA for all vested token holders
- Minimum $1.5m runway for the remaining team to realize the vision of oracle-less lending and beyond
- Sunsetting of Vesta Finance
- All parties aligned and happy
Over the past year and a half, Vesta has been committed to building out a robust and efficient CDP stablecoin on Arbitrum - VST. While the project had found some success throughout this DeFi bear market, it has failed to reach significant PMF. This, combined with much internal strife between the founders, has led to multiple roadblocks when trying to ship effectively.
As seen by VSP-1 and VSP-2 proposed by the two of the three founders, Atum and Midnight, this problem has bubbled over putting Vesta to a halt right before the release of V2’s Hearth Upgrade. The frustration was so overwhelming that they proposed to dissolve the whole project.
However, many folks on the team are still committed to building unique and effective products in DeFi within the Arbitrum community. Over the past six months, Mikey has significantly increased Vesta’s research and product design capabilities in DeFi by onboarding two mathematicians. As mentioned by one of the two researchers, Vesta has already produced a design for a new oracle-less lending protocol. Before this rage quit/dissolution incident, two engineers on the team had already committed to flying in to the office work together with the researchers, ensuring maximum output and communication.
The contention between the many issues have resulted in many proposals, many of them overlapping with one another. In the midst of the discussion, a community member went ahead with a first vote in an effort to gauge for the community’s preference between “full dissolution”, “optional rage quit” and “no action”. Over three days of voting, the majority voted for “optional rage quit” where some runway is provided for the team to continue building.
Given this preference, this proposal will make an effort to outline what an optional rage quit that gives the team some runway could look like. This proposal will enable all VSTA holders to redeem for a piece of the treasury, allowing everyone with a VSTA holding to leave in a peaceful manner, and continue to provide runway to the remaining enthusiastic team to see oracle-free lending and future products to fruition.
After extensive conversation with the remaining team members of Vesta, I conclude that it would be fair to leave Vesta with $1.5m to deliver oracle-less lending as well as to continue the cryptography research. The fund will be able to sustain the team for two years given a small team of highly-skilled engineers, DeFi researchers, cryptographers and product people. The fund will also cover overhead and potential emergency costs.
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, etc. should all be able to vote in this matter.
accurate as of 2023 Sep 15 2:29 AM PST
- Total treasury = ~$11.3m
- Total to be reserved for the team = $1.5m
- Total to be distributed = ~$9.8m
Total Supply = 100,000,000
- 71,944,131 VSTA in the Treasury MS
- 2,884,695 in the Admin MS
- (8,698,074 total VSTA in the Vesting Contract - 5,292,584.11 claimable)
- 668,595 VSTA in POL on Balancer and DefiEdge
= ~21097089 Circulating Supply of VSTA
Total to be distributed per token = ~$0.46
Upon passing of this proposal:
- Pause vesting contracts and burn the remaining VSTA
- The protocol-owned VSTA-ETH LP will be withdrawn to cease trading
- The final calculations will be re-assessed as the composition of the LP may have changed
- All other treasury assets aside from USDC and ARB will be sold to USDC
- Vesta will then deploy a contract and frontend interface for redemption
Please note that the capital will be forever immediately claimable.
Finally, the Vesta Finance product as is will be sunset by the remaining team through a process that will be defined in a follow up forum post if this proposal is to pass.
Given that this topic has been top of mind for the community for the past week, I would also like to kindly ask governance to forgive this proposal from the 7-day minimum discussion period requirement and instead have a 3-day minimum discussion period.
Once the vote passes, the team will spend two weeks building the frontends and contracts for the redemption before starting the redemption.
At the same time as the redemption period, the remaining team will begin sunsetting Vesta Finance and proceed to build out their new vision and product.
For: support this proposal
Against: against this proposal