An update on Tranquil Finance and Mimas Finance
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Sunset
Dear Tranquil and Mimas community members, thank you for all of your continued support.
After careful consideration and exploring our potential options, we believe that sunsetting Tranquil Finance and Mimas Finance is the best path forward. Despite our best efforts, our experience has led us to believe that there is no promising future on the current Harmony or Cronos chains.
Users should repay their borrows and withdraw all assets from these protocols. Holders of TRANQ and MIMAS can convert their tokens to FIRA on their respective chains at a fixed rate of 17-to-1.
Rationale
This was not a easy decision to make, as we are incredibly proud of the Tranquil and Mimas protocols’ many achievements. Mimas was able to successfully operate with fully onchain oracles, as to this day, Cronos has not onboarded Chainlink, the standard for money markets. Using onchain oracles, Tranquil was also able to become the first money market on Harmony, and it was the first and only liquid staking protocol on the chain.
The team tried very hard to make Tranquil V2 work after the Horizon Bridge hack on Harmony, but unfortunately, Harmony unexpectedly changed their mind about the direction of their chain.
Instead of relaunching a money market or liquid staking on a new chain, we want to concentrate all our efforts on building something truly innovative rather than competing in the highly saturated DeFi space with a product that already exists hundreds of times over.
Additionally, the numerous bridge hacks (e.g. Harmony, Multichain, etc.) over the last few years has clearly shown that it is not safe to even rely on basic security assumptions. This is a critical and systemic issue in the entire space, which makes any money market on a new chain highly risky.
We have been actively developing Defira V2, which aims to build an innovative and unique onchain strategy game. It will launch on a new (yet to be decided) chain with a better ecosystem and more promising future potential. At that point all FIRA tokens and Hero NFTs from both Harmony and Cronos will be bridged to the new chain.
Protocol Details
Borrowing for Mimas Finance will be paused (Tranquil Finance has been paused since the Harmony bridge hack), so only repaying debt will be possible. To further incentivize repayments, the collateral factors for all Mimas Finance markets will be gradually decreased from now on. Please repay your borrows, and withdraw all your tokens from the protocols.
The liquid staking token stONE will also be deprecated, and only redemptions will be available. Staking will be disabled, and it will no longer harvest and recompound the validator rewards. The DEX liquidity for stONE / ONE will be removed. Please redeem your stONE for ONE.
Furthermore, all protocol rewards will be removed, and the locked MIMAS and locked TRANQ pools will be unlocked so users can immediately withdraw their tokens without any penalty.
Holders can swap TRANQ to FIRA at a fixed 17:1 rate and MIMAS to FIRA at a fixed 17:1 rate. These rates are based on current market prices. Holders of rMIMAS can swap it to sFIRA at the same rate. To better align incentives, we will also convert all unvested team TRANQ and MIMAS tokens to sFIRA. All remaining TRANQ and MIMAS tokens will be burned.
All uses of TRANQ and MIMAS in the Defira game (e.g. wishing) will also be deprecated and removed.
This conversion will be available until October 31, 2023. Afterwards, all remaining MIMAS and TRANQ tokens and contracts on these chains will be deprecated, and the frontends will be shut down.
The Road Ahead
With this sunset, we will focus our effort on building Defira V2, a unique and engaging onchain game. You can read a bit more about our vision in this article. It is a highly experimental and ambitiuos project, but we expect a full launch to be ready some time in Q1 of next year. However, we may take some partial migration steps before then.
Although this is the end of Tranquil and Mimas Finance, their legacy continues in the journey of Defira!
