Toreus Finance’s Road to recovery

This is a long text, but please read it carefuly, as it should answer all the questions you might have.

When we created Toreus Finance, we set out to create ‘the perfect’ lending market with long term tokenomics, following the Geist model. To make sure we didn’t introduce bugs or vulnarabilities, we forked the code from Geist in full. As it turns out, we also forked a bug with reward distribution.

During out post-launch checklist we saw that fees collected from the borrowers are streaming towards the distribution contract, but are not finding their way, in full, towards stakers/vesters & lockers. We’d like to re-iterate that the lending market is working as it should. Deposits and borrows are working as expected, so does the Staking and Locking of $TORE for protocol fees. The only thing not working at the moment is the USDT/USDC & wBTC markets’ protocol fees are unclaimable.

Below an explanation (Read the full thread) from Geist when they encountered this issue:

Geist solved this with a new contract called TreasuryDistributor.sol. This contract withdraws gwBTC, gUDST & gUSDC rewards, converting them to wBTC, USDT & USDC. Than it sells these rewards for DAI, converts it to gDAI and than distributes the gDAI to the MultiFeeDistributor [MFD] (the contract that distributes the rewards).

This patch would require us to create a market on Curve for our “g-tokens” (the deposit side tokens), so we can convert hard assets to the Toreus deposit assets to be distributed as rewards. Furthermore this would mean that no USDC/USDT/wBTC rewards will be distributed, but rather sold and converted to DAI rewards. No rewards would be lost, but it would remove the option of earning these 3 assets directly.

The other option would be a relaunch. As we’ve identified the original issue, caused by a decimal division error, we’re confident that we can resolve this and launch the protocol as it was intended.
The founders have spent the day after the launch identifying the root cause and last night we’ve identified the issue and discussed both options and its implications for Toreus and the future.

We unanimously decided to relaunch Toreus Finance, and with it the Toreus token, as its the safest choice for the protocol.

The development team has deployed the protocol, with the code fix, this morning to Mumbai testnet, as KAVA testnet continues to fail when we try to deploy contracts. The code change is small, and only affects the distribution of the rewards. We’re also working with external advisors on this issue, to further mitigate any risk we would introduce to the protocol by changing the reward distribution logic.

Relaunch Items and Timeline

We’ll relaunch the protocol on Saturday, 22nd of April at 15:00UTC. After the redeploy, the “Status-Quo” will be exactly the same as before, keeping the impact to a minimum.

When we shared this announcement, a couple of things already happened:

• We contacted LP’s and have asked them to remove their liquidity. The teams liquidity is also removed, making $TORE illiquid. This should halt trading with the old $TORE making a snapshot easier.
• We’ve created a snapshot of all accounts holding $TORE, providing LP and/or are staking/locked in Toreus.
• We set the $TORE APR to 0. Meaning no more rewards will be given to the market.

Now that the trading has halted, the team is currently redeploying the Toreus Protocol on Kava mainnet. Instead of the 2 week warmup period like last time, we’ll launch the emissions at 15:00UTC, as we aim to turn this thing around today.

• We’ll redistribute the new token before the protocol is relaunched and emissions are live.
• Once the token is redistributed, the team and other LP’s will add the new liquidity to Equilibre at a pre-announced time. All the while making sure the token is as liquid as it was when LP was pulled.

Because we took a snapshot of the total TORE balance, people who are vesting will receive their rewards in full in the new token, rather having them to wait for 3 months. Stakers and Lockers will also receive the new TORE in their wallet, unlocked. They can choose to restake/relock or sell it in the LP. All rewards that where accumulated, but not vested, are forfeitted, this includes the protocol fees that where generated, now valued at a total of $750.

For liquidity providers in the Toreus markets, we ask you to close your positions as rewards have been set to 0. Later tonight, the pools will reopen in the new protocol and liquidity to the Toreus protocol can be re-added, this time receiving all the different tokens in protocol fees.

Relaunching the protocol also means that the Airdrop will come at a later time, for both the Incentivized testnet, as well as the Geist Lockers. We appreciate your understanding and we’ll announce new dates in the following week.

tl;dr
A bug in the distribution of some protocol fees has lead us to redeploy the protocol.
Your $TORE holdings will be snapshotted and the new token will be distributed to you, before liquidity will be added and the new protocol goes live.
If you have deposits/borrows in the protocol, we suggest removing those as the rewards have been set to 0.
We’ll relaunch the protocol and its emissions later today.
Any excess TORE in circulation will be burned by the team.

You can remove your funds from the depriciated lending market using the following URL: https://old.toreus.finance/home
If you have trouble removing your collateral at once, try to remove it in smaller chunks.
The new TORE adress is: 0x8549724fcC84ee9ee6c7A676F1Ba2Cc2f43AAF5B

Closing thoughts

We’re confident this is the best way forward for the $TORE investors and the Toreus protocol. 95% of the protocol is working as intended and we’ve got 3M+ TVL on the first day of emissions, without bringing friendly whales and with a Fair Launch of the native token. If nothing would change, TVL + token price + KAVA Rise, the protocol would’ve generated ~ $300,000 in fees yearly, with the protocol fees being dispersed among depositers and stake/lockers.

We understand some of the community might be disappointed, but the redeployment of the protocol will ensure it stays safe to use in the future.
The timeline, as layed out above, will ensure that their will be almost no impact to the $TORE token, while we upgrade the protocol to work as intended.

Once the dust has settled and the post launch items are completed, we’ll start ramping up the marketing and initiate the flywheel once more; as more TVL means higher RISE rewards, which means more $TORE bought from the market to provide LP (POL) and more revenue share per $TORE, which increases the price, increasing the lending markets’ APR, increasing the TVL, etc..

Thank you for the continued support from our community and our partners as we ensure the longetivity and security of Toreus!

Onwards and upwards!