Delphi Labs proposes that the protocol be upgraded to automatically close open positions in the Red Bank and Fields of Mars and refund users by returning their deposits to their wallet addresses. This will essentially shut down the protocol and clear all assets it currently holds.
Abstract
With the unprecedented collapse of UST and the price of LUNA, the future of Terra is uncertain. Existing depositors in the Red Bank and Fields of Mars have been asked to close existing positions while the community assesses the best options for the future of Mars, however some positions inevitably will remain open. In the meanwhile, Terra (or “Terra Classic,” as it might become known) is likely to become economically unsecure or permanently halted, and questions regarding crediting smart contracts with assets on “Terra 2” and other chains remain unanswered.
Therefore, to put users’ tokens back under users’ direct control, we propose that the emergency Mars Multisig upgrade the Mars smart contract system to unwind all Red Bank and Fields positions and return all tokens directly to users’ wallets.
Implementing this upgrade does not preclude the potential that Mars could launch on a future Terra hard fork or another chain altogether through the use of historical snapshots.
Motivation
Delphi Labs proposes that the protocol be upgraded to automatically close positions in the Red Bank and Fields of Mars for several reasons:
There are competing governance proposals for future Terra hardforks. If one or more of them succeeds, it could lead to a scenario where Mars would need to be maintained on multiple chains (e.g. both Terra Classic and Terra 2).
Without a robust network of validators and infrastructure, Terra hard forks may have questionable economic security as they may be operating on a low number of validators with small economic stakes.
With the launch of new Terra chains and/or an upcoming snapshot for a potential hard fork of Terra, airdrops will be sent to LUNA and UST holders. It is preferable that end users – and not the Mars smart contracts – hold those funds.
Specification
Under this proposal, the following steps would be taken:
UST would be refunded to all addresses with UST locked in the lockdrop.
All actions on the Red Bank and Fields of Mars would be disabled both in the UI at marsprotocol.io and on the smart contract level.
All Fields of Mars positions would be closed and the corresponding debt repaid back to the Red Bank by Delphi Labs.
Debt on all open Red Bank positions would be paid off using funds from Delphi Labs
The remaining assets on the Red Bank and Fields would be refunded to the applicable addresses.
Implementation
Delphi Labs has funded the Red Bank with sufficient LUNA, UST and ANC to close all open positions without users first needing to pay off outstanding loans. This ensures 100% of all positions can be closed.
With an uncertain future for Terra, and contested current votes - we endorse this proposal and believe it is in the best interest of the protocol & community.
Doing so will free significant liquidity and allow users to be more informed.
Currently, I can’t withdraw my USTs to my terra station wallet due to the following error (TRANSACTION FAILED
21465uusd is smaller than 518963uusd: insufficient funds: insufficient funds).
All my funds are still in the my station (not in redbank or fields), would that mean that I would be refunded as well?
How will UST released in lockdrop relate to LUNA/UST/aUST reimbursements in Luna fork proposal ?
Will that UST tokens form lockdrop be covered by their recovery plan ?
Please don’t waste time waiting for feedback on this proposal. This is the only course of action left to take, so just take it before UST hits 0 or the bridges shut down, chain halts, etc.
What will happen to my xMars? I got 30k xMars and i’m waiting for the unstaking cooldown… It was keeping it with hope to a upgraded chain… will I lose them?
I keep my xMARS stake for voting and because I expected an announcement from Delphi on a specific chain migration. So many other Terra Luna protocols are moving fast and protecting their investors. It seems that Delphi has abandoned us to the wolves.
The Terra governance vote 1623 for Terra 2.0 has just been approved by the wider Terra community.
As a result, I am proposing that the Mars protocol team includes all locked UST (aUST) in Mars protocol for Terra’s Indexers for the pre-depeg snapshot of 10% aUST for some new Luna on Terra 2.0 and ensure that all Mars community members individual wallets are indexed instead of the entire locked aUST in Mars protocol which has a 500k whale cap. (The Astroport team which is from the same Delphi Labs team - Jose Maria Macedo, have already included all Luna / bLuna LPs in Terra’s indexers for the pre-depeg snapshot of 35% Luna for some new Luna on Terra 2.0)
This will at least help community members get some new Luna on Terra 2.0, as they have watched their years of hard earned savings (locked UST / aUST on Mars protocol) go close to zero & while everybody else was dumping their UST.
Thank you Mars Protocol team for including all Mars community members individual wallets locked UST / aUST on Mars Protocol for Terra’s indexers for Terra 2.0
bom dia pessoal, queria saber o que aconteceu com meu deposito no red bank que desapareceu e não consigo acessar, tem algum processo q eu possa fazer para sacar meu dinheiro ? fiquei mais de 1 mes sem acessar e quando entrei tive essa surpresa, desde já agradeço a quem puder me ajudar