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On 6th June 2022 conversions between all assets on the Haven network were suspended. This action was in response to the market conditons and in the interest of the long-term safety of the project and the community.
The community economics working group acted quickly, in what was believed to be in the best interest of the protocol and aligned with wider community sentiment. A vote was held to underwrite this, the commnuity voted with 92% in favour and, as such, conversions remain paused until further notice.
Why was it done?
There were a number of factors involved in the recent circulating supply and Haven’s existing economics model that all coincided to produce the potential for a hyper-inflationary event that could have had a lasting and damaging impact on the network.
The recent collapse of Luna has shaken the general market confidence in algorithmic stablecoins and thus has also caused weak market activity for Haven as a knock-on effect. There are, however, clear differences between the cause of Luna’s collapse and any perceived risk to Haven. You can read about them in our recent blog post here: https://havenprotocol.org/2022/05/11/haven-protocol-community-update/
In addition, the economics working group had already been discussing the potential for on-chain mechanisms that would automatically pause conversions. This would be built into the protocol and be triggered if pre-determined asset ratios in the network were reached. This manual intervention effectively brought development of this forwards.
When will they resume?
The CEWG are actively discussing a range of ideas and solutions to strengthen the network and help mitigate future economic attacks. Some of them are discussed in our recent blog post which can be found here: https://havenprotocol.org/2022/05/31/economics-working-group-update/. They have taken on board the numerous ideas and suggestions from the wider community and are in the process of refining them before presenting a proposal for the community to vote on.
The core developers are being consulted on implementation timelines and limitations and this will be taken into consideration when putting the proposal to the community.
With this in mind, there is no date set for the re-enabling of conversions. The working group will, however, aim to communicate progress regularly.
For anyone wishing to enter or exit the network it is important to note that XHV and xUSD can still be traded on all exchanges where they are listed. You can also transfer your assets to and from your Haven Vault.
NOTE: While the conversions are paused your portfolio value will be displayed incorrectly due to the price feed being disabled.
Thanks to all of the Haven community for their patience while the working group develop a solution to strengthen the economic model for the long term benefit of the project.