Sunsetting Omm Discussion

Based on the new direction by the ICON Foundation, Omm’s liquid staking service won’t be needed in the foreseeable future as ICON L1 shuts down. As a result, Omm early contributors would like to propose sunsetting the Omm protocol. Here are next steps we are proposing for the liquid staking protocol:

  1. Distribute the fees accrued in the DAO fund (136,518 sICX) to users based on their bOMM balance
  2. Let users unlock their bOMM

We are also discussing best ways to unwind previous money market deposit & borrow balances, so bnUSD depositors can get some of their capital back given its 100% utilization rates. If you still have assets deposited into the money market, please withdraw them as soon as possible since the money market will also sunset completely.

I think this is the best path, does a snapshot make sense to avoid gaming this?

I don’t think the snapshot is necessary at the moment as users who are still actively monitoring the governance can boost their bOMM if they wish.

Updates regarding money market situation:

  • Since money market has been deprecated, USDS and IUSDC have gone through bankruptcy and hacks, and thus will be valued at $0 for the purpose of distribution
  • There is an individual (hxbffc0dd3982a8cc3b6154a58fe7fa3336e102559) who borrowed $20K+ bnUSD by supplying USDS, which is causing a large discrepancy between users’ [Total Supply - Total Borrow] balance and market’s [Total Supply - Total Borrow] balance
  • Users’ net balances are $90,306 and Market’s net balances are $67,212, resulting in approximately 75% capital back to users who have not withdrawn their balances since Omm’s transition to liquid staking 2 years ago
  • There are approximately 960 users with higher than 0 balance of [Total Supply - Total Borrow] when counting ICX, bnUSD, and OMM market
  • $67,212 in sICX and OMM will be distributed to 960 users pro rata based on their [Total Supply - Total Borrow] balance