Haven Protocol Update

It’s been nearly a month since our hard fork and it’s time to look at where we are and what to expect.

Schlupf

Since Slippage went live, we have seen a rise in the frequency of conversions, resulting in an increased supply of XHV.

At the same time the average burn rate is over 80% due to the current state of the protocol.
In the last week, as prices dropped further, the burn rate exceeded 90%.

The initial sharp rise in the supply was expected as VBS was relaxed and collateral unlock times reduced from 14 days to 24 hours. However, increased selling pressure on exchanges from the recent negative sentiment compounded the rise in supply further.

The EWG are closely monitoring Slippage and are discussing next steps.

GUI Development

The GUI development for Web and Desktop are ongoing.
Progress is being made and we are hoping to have an update for this soon.

Cake Wallet

We are working with Cake to get Haven integrated back into their app.

This is looking hopeful and we are currently waiting for feedback on the latest Haven release, which includes updates to the Wallet API, as well as a couple of Pull Requests (PRs), which have been submitted on Cake’s github.

We will share further developments as soon as we have them.

Treasury

Having recovered most of the funds from the old multisig wallet and with a new multisig wallet in place since the hard fork, we will start publishing monthly treasury reports again.

The first one is for July 2024 and includes additional information about recovered funds and compensations.
You can view the latest report here:
https://havenprotocol.org/knowledge/treasury-reports/

Difficulty Drift

The difficulty drift issue has re-appeared after the fork, which could explain why certain conversions get stuck in the pool and eventually flushed.

A potential solution has been identified and will be made available later this month.

Offshores

The frequent and repeated small offshores since Slippage was introduced have not gone unnoticed.
Devs have reviewed existing transactions and haven’t found anything to be concerned about.

A tool has been developed to monitor and examine these conversions when they appear.

Haven Developers

We are extremely happy to report that our white hat agreed to officially join the Haven dev team.

As you all know, he’s been helping Haven over the past year and was instrumental in discovering vulnerabilities, writing the tools that allowed us to access the old multisig wallet, and most recently updating the Wallet API, which will allow Haven’s integration back into Cake.

He joins the team on a volunteer basis, with no hard time commitment.
Instead of asking for payments, he would like us to burn (through conversions) an appropriate amount of xUSD or XHV from the treasury wallet as a form of donation.
This process will be re-evaluated in a few months.

For now he would like to remain anonymous, but he might choose to interact with the community in the future.

xUSD Whale

After many discussions and negotiations, we have come to an agreement with the xUSD whale, in a bid to help our protocol recover faster.

The deal we agreed on is to burn 10 million of his xUSD in return for 2.5 million XHV going to the whale.
At the current xUSD supply of 14.1 million, this burn represents 70.1% of the total supply of xUSD.

The 2.5 million XHV constitutes roughly the amount he had before he converted it to xUSD back in 2022.
We believe this is a fair settlement, given the current circumstances.

The mint and burn will likely be automated and done through code.

We appreciate this arrangement with the whale and hope this will put Haven in a better position and start improving the health of the protocol.

We will notify the community once the process has been completed.

Nächste Schritte

As our protocol is still in a vulnerable state, we are going to focus on things we can control to help Haven regain its footing.

Work on the GUI and Cake are priority, as well as fixing the difficulty drift.

At the same time the EWG is reviewing Slippage to see if any changes need to be made.