DFIP Spotlight: Deprecation of All Pools Involving dCryptos

DeFiChain -

The DeFiChain community has proposed a DeFiChain Improvement Proposal (DFIP) to deprecate all liquidity pools involving dCryptos, such as DFI-dCrypto and DUSD-dCrypto.

This step is consistent with a previously approved DFIP addressing the deprecation of XCHF and MATIC pools, highlighting DeFiChain’s proactive approach to maintaining ecosystem health and protecting user interests.

Structured Deprecation Procedure

The proposed implementation mirrors the process established in the earlier approved DFIP for XCHF and MATIC. It involves a transparent, phased approach designed to minimize disruption:

  1. Pool Deprecation Announcement:
    • Provide clear communication at least 30 days in advance.
    • Cease any new liquidity additions immediately upon announcement.
  2. Liquidity Withdrawal:
    • Actively encourage liquidity providers (LPs) to remove assets promptly.
    • Upon withdrawal, LPs receive their proportional shares, albeit recognizing that unwrapping of dCrypto tokens will be disabled, rendering them effectively valueless in their original form.
  3. Disabling Swap Functionality:
    • Officially disable pool functionality two months post-announcement, leveraging the most practical development solutions available.

Strategic Benefits for the Community

Risk Mitigation: Deprecating pools involving inactive or non-functional assets shields users from unnecessary financial risks and aligns the ecosystem with active and viable financial instruments.

Resource Optimization: Redirecting developer efforts, liquidity incentives, and community engagement toward thriving and strategically important initiatives enhances overall ecosystem effectiveness and sustainability.

Trust and Transparency: Transparent and clearly communicated actions reinforce DeFiChain’s commitment to safeguarding user investments, strengthening community confidence in governance practices.

Future-Ready Framework: Establishing a clear precedent for managing asset deprecations ensures smoother governance and operational processes in future similar scenarios.

Encouraging Liquidity Migration: Proactively guiding liquidity providers to shift their resources to healthier, active pools promotes stronger liquidity dynamics and ecosystem resilience.

Oversight and Execution

The Token Economy Special Interest Group (SIG), supported by the Marketing SIG, will coordinate and communicate effectively throughout the deprecation process.

Additionally, dCryptos designated for deprecation will be clearly marked to prevent future collateral-related issues, as outlined in the DFIP regarding the removal of deprecated tokens as collateral.

Conclusion

The DFIP to deprecate all dCrypto-related pools underscores DeFiChain’s dedication to protecting community resources, promoting sustainable development, and maintaining operational clarity.

Community members are encouraged to actively participate in governance by casting their votes and contributing to the ecosystem’s long-term health and integrity.

Participate in this decision-making process by reviewing and voting on this proposal via DeFiScan.