The Deprecation of Clone Protocol
Aug 12, 2024
Dear Clone Community, Partners, and Friends,
It is with a heavy heart that we announce that we are winding down Clone Protocol. The deprecation will be finalized (all liquidity withdrawn and clAssets refunded) by September 30th. After much deliberation, we have come to the difficult conclusion that we lack the resources to continue building the protocol. Our primary focus now is to ensure that all users can safely access 100% of the capital they have deposited. We believe the most responsible course of action is to deprecate each cloned asset pool.
Stage 1 of the Deprecation Process: Extraction
As we begin the deprecation process, the first stage will be the Extraction phase. During this phase, Clone Markets will be frozen, and liquidity providers (LPs) will have the opportunity to withdraw their liquidity, claim their rewards, and pay off their Impermanent Loss Debt (ILD). If an LP does not have enough clAssets to pay their ILD, they can obtain more using the “Wrapper” on Clone Liquidity.Please note that during this stage, clAsset holders will not be able to sell their tokens on Clone or unwrap them. clAsset holders will have the opportunity to unwrap their tokens for their bridged asset counterparts in a later stage. Additionally, clAsset borrowers will have the chance to pay off their debts and close their positions during the Extraction phase.
The Extraction stage will last two weeks, until August 27th, 2024.
Stage 2: Liquidation
Following the Extraction stage, the Liquidation phase will begin. Any LPs or borrowers who have not closed their positions by August 27th will be liquidated. This process will be handled by our in-house liquidation bot, with fees set as low as possible to minimize capital loss for liquidated users. Nevertheless, we strongly recommend that users manually close their positions before the deadline to avoid liquidation.
The Liquidation phase will take exactly one day to complete.
Stage 3: Deprecation
We will enter the Deprecation stage on August 29th. At this point, all liquidity will have been withdrawn from our pools, all borrow positions will be closed. During this stage, clAsset holders can use the wrapper to swap their deprecated clAssets for underlying bridged assets. These assets can then be bridged back to their original chain and sold, or sold using Jupiter on Solana if sufficient liquidity exists.
The pools will remain in the Deprecation stage until September 30th, 2024.
Questions?
If you have any questions regarding this process, please create a ticket in our Discord, and we will be happy to address your concerns. Additionally, we will be hosting a Community Call tomorrow, August 13th, at 11 am EST in our Discord. This call is specifically designed to address any questions or concerns you may have about the deprecation of Clone Protocol.
Conclusion
We want to extend our heartfelt thanks to the community for your continued support over the years. This journey would not have been possible without you. Our goal has always been to make DeFi a more engaging and fun space for our users. While our team was unable to push this vision into the long-term future, we hope our invention inspires others to innovate and build in the space.
Thank you for being a part of the Clone Protocol journey.
Sincerely,
The Clone Protocol Team
