The Plan to Tackle
@THORChain's $200M Debt Crisis 📊
Last night, the pivotal governance proposal, "Proposal6", pushed by
@AaluxxMyth, was passed by Node Operators to help bring THORChain out of Hel and back to Valhalla.
$TYC Equity Tokens 🪙
This restructuring effort aims to resolve their debt crisis by converting defaulted debt into
$TYC (Thorchain Yield).
THORChain will mint a fixed supply of 200M
$TYC and distribute one token for every dollar of defaulted debt via Savers and Lenders. Additionally, the token will receive 10% of the network's revenue in perpetuity as opposed to until 2x the initial debt as per TCB v1.
THORChain's core team will create a shallow $500k
$RUNE/$TYC pool at $0.10 per
$TYC. This pool will be funded by using $5M from the treasury to buy $500k/week for 10 weeks. In addition, the core team will donate the other $5M to pools pro-rate to provide deeper liquidity over 10 weeks.
The price of
$TYC will depend on how the market reacts to risk/reward, multiples, and the potential upside of all future inflows of swap fees at current values.
Retiring ThorFi ❌
As per one of the steps of this plan, the core team will be sunsetting ThorFi (Lending, Saversm PoL, and RUNEPool) in turn adding Liquidity Nodes as an alternative. This change aims to increase capital efficiency in order to offset the 10% fees given to users.
The team mentioned that because of this change, capital efficiency would increase up to 2x whilst affording the perpetual 10% fees. This would leave Node Operator revenue untouched and out of harms way. The main goal behind retiring ThorFi is to increase volume and swap fees for
$TYC holders, LPs, and Nodes.
Implementation 🔨
Devs from
@Maya_Protocol,
@ninerealms_cap,
@strangelovelabs, will be collaborating to flush out the implementation. Ensuring a smooth and seamless rollout.
The core team will be continuously providing updates to the community as they finalize the implementation details.
"Make THORChain great and BORING again!"
To Valhalla 🏛️