As we leave our mistakes behind…
Introduction
We recently experienced a rollercoaster ride with our Token Generation Event (TGE) and protocol migration. In this article, we will share what happened during our TGE, the migration process, and how we plan to move forward. Lastly, before going over the recent updates to Kava, we make an important announcement in regards to $TORE team tokens and how we attempt to make reparation in the eyes of our community for the mistakes performed.
The TGE
Our TGE was a success, with 15k TORE and 15k KAVA (in USD terms) bootstrapped by the Toreus team to ensure a fair launch, and the token price soaring up to $0.46. However, shortly after the start of emissions, we encountered an initial bug that had to be fixed, at a token price hovering around 31x the TGE price and with more than 150k in liquidity.
The Bug and the Solution
The issue was related to the distribution of the protocol fee, which was not being distributed to stake/stake-lockers for assets that did not have 18 decimals. This was a significant problem, and we had to find a solution quickly. We had two options to fix the issue: a workaround by converting the assets that did not work into an asset that did work or redeploying the protocol fully. The workaround was not feasible due to the unavailability of Curve volatile pools and the risk of introducing potential vulnerabilities.
Therefore, we decided to go for the full redeploy option, which required us to make a playbook for the migration in such a way that nobody would be negatively affected. After a re-deploy on Polygon’s Moombai testnet and a shadow deploy on Kava mainnet, we were able to gauge that the solution we implemented did, in fact, work.
The Protocol Migration
We depreciated the old protocol by halting emissions and made a snapshot of the status quo of holdings, stakings, vestings, and lockings. Then, we removed liquidity and asked people to take out their money from the old protocol. At this point, we deployed on Kava mainnet the new version of the protocol with the decimal-related solution implemented, airdropped everyone their tokens, added liquidity, and started emissions.
Issues and Fixes
However, things did not go as planned. When we halted the emissions for the old version, the allocation points for emissions were set to 0, and we allocated the new points to a set of dummy pools, creating a divide by 0 error and an internal error in the MultiFeeDistribution contract. This caused temporary issues for users to interact with the lending pool, the Aave part of the protocol’s logic.
The developers fixed the issue by removing the MultiFeeDistribution contract from the old protocol, and withdrawals were resumed.
Nevertheless, we also had issues on the new version of the protocol: we wanted to promptly redeploy the new protocol, and due to a non-responsive RPC as well as a human error, a “0” too much was added to the TORE price upon adding liquidity, leading some smart and quick people to capitalize on this mistake by selling their $TORE into the strong price.
Moving Forward
Despite the challenges we faced, we managed to get our protocol running as intended, and everything is now working well. Our token price is currently around $0.04, still four times up from the initial TGE price, but our token’s liquidity is hovering around $40k.
In addition, airdrops have commenced, and the supply side of our TVL is approximately $1.5M.
From this experience, we have learned many valuable lessons.
However, as we move forward, in order to acknowledge our mistake, we are going to burn ALL team tokens to make amends.
We wish that this action comes across as a genuine attempt at redemption from the team, and an acknowledgment that we take our responsibility for the mistake.
As we look to a bright future and the success of Toreus as a protocol, it should be kept in mind that Toreus also receives Kava RISE program incentives, which will be used for buyback and increasing liquidity.
Additionally, we have the Equilibre veVARA NFT that we will use to further the success of Toreus. We are going to employ it to redirect more rewards to our liquidity pool, as we create bribes that are matched by Equilibre and we vote on their protocol for incentives. In addition, by using the VARA that we farm, we can then create more Protocol Owned Liquidity for $TORE.
We are also working on integrating our operations with our partners and on increasing the quality of our tech infrastructure. We will achieve this by expanding on the analytics and data side of Toreus, by working on RPC, and by running our own Kava node from now onwards.
As a team, we are very intent on creating a future where we can look behind at our mistakes and be pleased that all of our efforts to repair our mistakes will have contributed to building one of the best lending markets that contributes to the Kava ecosystem.
With this in mind, let’s go over the last updates from Kava.
Kava 13
Kava is introducing Kava EVM 2.0, which will improve performance by optimizing full node software and expanding hosting providers. The upgrade also includes improvements to the Kava EVM to support new protocol onboarding and faster transaction processing. Kava 13 will also feature a new internal bridge that allows users to send native Cosmos assets to the full range of protocols deployed on Kava EVM, reducing reliance on third-party bridges. Additionally, the Strategic Vault controlled by Kava DAO is getting an upgrade, providing more autonomy and flexibility over how emerging protocols are supported in the Kava ecosystem. Kava 13 is expected to unlock liquidity on both Cosmos and Ethereum and increase the utility of wallets, dApps, and assets on both chains.
Having said this, last but not least, we want to extend a warm thank you for your continued support, Toreus is built for the people, by the people, and none of this would be possible without you.
Sincerely,
The Toreus team.
