Addressing Community Concerns About Scrub Finance
Hi Mm Burrow/Fam, it is unfortunate that one of our launchpad partner — Scrub Finance has been liquidating funds in enormous amounts via the secondary market, hurting our ecosystem and causing a negative impact on our price.
We always value our community first and will do everything to protect the interest of our investors/holders.
Within the last 10 days, Over $2,200,000 USD has been seen liquidated from the LION/TIGER Team Treasury via the secondary market and sent to a CDC account, causing prices of MMF to also dip because when LION/TIGER is sold into USDC, this happens: LION/TIGER price drop > SVN price drop > MMF price drop (a function of how liquidity works)
Moreover, upon reaching out with the Scrub team to manage this, our team was actively ignored and there are still existing signs of selling that are proceeding on.
Our team has been very prudent in selecting projects that are allowed to be launched off our launchpad with KYC, audit etc. However, this style of profit taking is a huge red flag to our team. With that, we have come to a resolution that we believe would be good for our community.
The fact is that this is all business and the intention is rightly geared towards profit. That being said, the difference lies that we as project devs are building and doing business in web 3.0, a space that tears down more walls between the consumer and the business. What that essentially means is that business in web 3.0 have a responsibility and a rare opportunity to actually form genuine relationships with the clientele and their work while simultaneously aligning everyone towards profit. That is how “wagmi” in web 3.0 began, a chance for everyone to win, together.
We at MM, knew this from the very beginning which is why we have made almost every effort to give back to our MM community to the most we can as a team while remaining a strong business. On the contrary, our partner, Scrub Finance, clearly does not share the same alignment as us, which is their right, but that means it is hard to work together given the stark difference in principles. We tried communicating with the team within the last 12 hours but wasn’t able to get any response and as a result, we had to take some action.
“Greed is a bottomless pit which exhausts the person in an endless effort to satisfy the need without ever reaching satisfaction.”
All along, we have been very stringent on our partnerships simply because we are aware that very few projects have this same type of mentality as us. When the money comes, greed always seem to take over and when money becomes the sole focus behind the work, that is when wagmi falls apart. Despite knowing this, we tried time and time again to believe in others that are not MM, only to be shown more examples of our prior belief. This is why, we will be taking these steps as a precaution to protect our MM ecosystem/users.
Steps that we are taking:
- Remove whitelist of LION/TIGER token on our swap within 24 hours
- Encourage users to break LION and TIGER liquidity and swap it back into SVN before the removal of whitelist
- Discourage users to participate in the BEAR sale because it would have the same effect on our ecosystem (it will allow project owner to sell BEAR into USDC when users form MSHARE/BEAR LP, causing a dip in MMF price together with all MM ecosystem tokens).
We recognize the lack of places where users can get farm yields on their Savanna token and for that, we will launch a single staking Savanna Pool on https://svn.finance/desert within the next 48 hours.
It’s unfortunate that it came to this. The MM team will learn from this and continue to do our best and serve the ecosystem. To alleviate this situation, our MM Finance team is now considering a possibility of launching a token that is algo-pegged to SVN, so as to provide the same earning opportunities to all SVN holders — The biggest difference being, our team will retain control of such a project, and zero tokens will be minted for our team (only for the DAO). So MMF team earns 0.
We have mentioned in prior communication our team isn’t exactly keen to launchpad such another algo-pegged token, however if the above proposition is something our users desire, our team will be open to building this, without allocating any tokens for our own team. We will like to hear our community’s thoughts on this, and possibly put up a simple form of voting for this soon.
That said, we are still aware that Scrub DAO and Digits DAO still holds SVN tokens in their DAOs. We believe that their team has the right intentions to still continue running their project by protecting the LION peg with the SVN in their DAO as stated in their whitepaper. Do note that our team is not actively trying to attack any external projects but we are simply taking pre-emptive action to protect our ecosystem.
*Update: Digits has been removed from the team and the community team has took over.
