Volt Protocol v1 Deprecation

Hello all,

The Volt Protocol core contributors, in consultation with advisors, have made the decision to deprecate the currently live Volt Protocol v1. The protocol is already in a partially paused state, entered as a precaution against volatility in Compound due to the USDC depeg.

All user funds are safe and available for redemption as DAI in the PSM. The VOLT rate will be set to zero, meaning all VOLT is redeemable at the current exchange rate indefinitely, and will not have further price increases. Minting will be paused in the next 24 hours. We encourage you to redeem at your convenience when gas costs are reasonable. The majority of surplus buffer funds have been withdrawn.

This was decided before the tumultuous events of recent days, but they underline the reasons behind the decision. Maintaining and updating a live smart contract system is both risky and costly. With a small team and limited resources, we have found ourselves spread too thin despite clear goals for the next version of the protocol.

Deprecating the v1 Volt Protocol (putting it into a pause state where users can redeem at their convenience) will allow us to buckle down and deliver v2 that is more performant and robustly decentralized than any existing stablecoin or other on chain lending pool.

We’ll be talking more about v2 soon. The core goal is a lending market with native stablecoin that does not rely on trusted oracles or privileged collateral types, has efficient market based interest rates, can scale up and down smoothly, and is resilient to partial losses in the collateral base. It must also have best in class security to ensure it can stand the test of time.

The terms of the VCON airdrop will be maintained, except that the current epoch of distribution will end with the publication of this post, and the next epoch will be delayed until the v2 launch. The mainnet launch of the VCON token will also be delayed until the v2 protocol launch.

The next version of Volt Protocol will be built in public with the mindset that the more economic and technical scrutiny given to the project, the better. The Volt Protocol Discord will remain open and contributors will share progress updates for v2 on Twitter and elsewhere.

I’d like to thank everyone who has gotten involved with Volt Protocol so far. For those who have been here since the beginning, it has been a year bookended by chaos, starting with the Fuse exploit nine days after our launch. That said, the world has become more aware than ever of the need for a robust and credibly neutral alternative to the banking system, and we’ve made great strides in our technical understanding of how a stablecoin can be as decentralized as Ethereum. Please stay in touch, and I’ll be available to answer any questions on Discord or Twitter.

Stay safe out there,