[Proposal] VSP-6 - Dissolve Specification

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This proposal is a new version of [Deprecated] [Proposal] VSP-6 Fair Path Rage Quit. It was modified to become the “full unwind” proposal.

Introductory Comments

Given the sentiment expressed in the snapshot vote initiated last week and after the ample discussions that have happened on Discord, I’d like to submit a new proposal that will present the specifications for the option to wind down Vesta Finance.

As we stand right now, there are two agreeable solutions validated by tokenholder consensus:

  • Option A) Unlimited rage quit at book value for all VSTA holders with a team runway of $1.5M (VSP-5)
  • Option B) Unlimited rage quit at book value for all VSTA holders and dissolution of Vesta Finance (VSP-6, this proposal)

I urge everyone to put their own judgment aside during the administration of this matter. We are here to collectively find a solution that serves the objectives supported by all parties involved.

Proposal

VSTA holders have unlimited time to exchange their VSTA for a pro-rata share of the total Vesta Finance treasury (book value, currently ~$0.526). 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

Please note that the claimable assets will be forever claimable, there is no time limit to redeem USDC and ARB for VSTA.

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.

Motivation

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 product-market fit. 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 reached a point where they suggested exploring unwinding Vesta Finance.

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.

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 $2,238,755 as of today
  • 274.00 ETH, valued $448,015 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 $46,225 as of today
  • Minus liabilities

The total treasury assets value is $11,100,581 as of today.

Links to the treasury:

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)
  • (-) 690,884 VSTA in the protocol-owned liquidity (c)
  • (-) 1,077,356 VSTA unvested (4,041,806 VSTA in the vesting contract - 2,964,450 VSTA claimable)

The VSTA circulating supply is 21,073,799.14 as of today.

This puts each VSTA book value at $0.527 as of today ($11,100,581 / 21,073,799.14).

Execution

As soon as this proposal is passed and approved, the following steps will be executed:

  • Pause vesting contracts and burn unclaimable VSTA
  • 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

Timeline

This proposal will remain open on the forum for comments for 2 additional days (its previous version has already been available for 1 day) before proceeding to snapshot, as validated by the community through a sentiment vote.

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.

Voting

For: Approve this proposal
Against: Against this proposal

2 Likes
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Updated circulating supply numbers, as I can’t edit my post for now:

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 $2,238,755 as of today
  • 274.00 ETH, valued $448,015 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 $46,225 as of today
  • Minus liabilities

The total treasury assets value is $11,100,581 as of today.

Links to the treasury:

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)

The VSTA circulating supply is 20,824,930.40 as of today.

This puts each VSTA book value at $0.532 as of today ($11,100,581 / 20,824,930.40).

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The snapshot vote is now live for voting: Snapshot.