Sunsetting Arcadia V1

Recent events have been tough for both the community and the team. We’re grateful for the support we received. Your trust and patience has been invaluable. We continue to work diligently on the recovery of user funds in collaboration with law enforcement.

While we build towards our path forward, we will be sunsetting Arcadia V1.

At this moment, all actions are paused except for winding down positions. The interest rate was adjusted to 0% to halt any further interest accumulation at the time the protocol was paused.

From Wednesday, 26th July at 1300 UTC, the lending pools’ yearly interest rate will be adjusted to 3% with a weekly exponential increase. This is intended to encourage the closure of any remaining open positions in a systematic manner. If you need any assistance on how to best unwind your position, don’t hesitate to come to our Discord so that we can assist you promptly.

When the majority of open positions are wound down, liquidity providers of some Tranches will be able to withdraw their residual funds through the dApp. The remaining amounts are different per Tranche and depend on:

• Whether it was a Senior or Junior Tranche (bad debt is first written off the junior tranche).
• The relative share of the Junior and Senior Tranche at the time of the attack.
• The utilisation of the lending pool at the time of the attack.

The liquidation process and accounting of bad debt happened as foreseen in the smart contracts. The team has no possibility or admin-powers to alter liquidation and withdrawal logic. The table below shows an overview of the recoverable funds per tranche, chain and lending pool.

We are committed to building a more robust, resilient protocol and regaining user trust. This experience has only further increased our focus on security, and we have no doubt that our community and protocol will bounce back as we continue shipping category-defining DeFi products with Arcadia V2.

We will be hosting an open office hour every Friday at 4pm CET, where we’ll discuss our progress and answer all your questions. Come talk to us in our Discord!