The Omega of Tesseract Finance
With any tough decision, it’s best to be direct and resolute. Today, we’d like to inform all members of the community and relevant stakeholders that we have decided to wind down Tesseract Finance. The multidimensional cube analogue of Defi is no more.
This decision was not made lightly. It wasn’t as if we woke up one day, looked down on the market-wide bloodbath and yelled “shut it down”. This is the end result of a series of lengthy discussions and many attempts to reboot, pivot and push through the proverbial wall that we’ve hit with Tesseract. None of the core team are strangers to founder pains and building through turbulence, but at the same time, we’re lucid enough (and with plenty of market experience under our belt) to know when it’s time to consolidate.
We spent a good part of the last few months discussing, searching and pivoting but were ultimately unable to find a sustainable long-term solution for Tesseract. All the options we came up with would have burned significantly more time and money, and considering the recent market events, we saw the current state of Tesseract for what it is — an uphill battle with questionable upside for its stakeholders. As such, we decided it’s the most prudent for everyone involved to consolidate and concentrate our efforts on weathering the upcoming storm.
For full transparency, we’ve talked with many different ecosystems and their foundations and have a long list of sidechains and L2s that were open to supporting Tesseract, either via grants or other means. While relatively small, these could provide an additional runway for the core team. We also have a sizable list of potential partnerships and aggregations pending. However, we ultimately decided against pursuing the above, as it would create outstanding obligations that we don’t feel 100% confident about (especially in the current market climate), making us not take on additional risk after so much time, money and effort already expended.
In hindsight, what we lacked and what ultimately sealed our fate was the speed of execution; Defi is a brutally fast-paced game, where the opportunities flash and disappear in a blink of an eye. If you’re slow on the trigger, sooner or later you’re toast. We opted to build Tesseract at a steady pace, focusing first on the stability and safety of the platform, but we lacked serious engineering manpower to make real-time product pivots and react quickly to shifting market demands.
This has been a painful and humbling experience for all of us at Tesseract, but at the same time one of the most valuable lessons we learned over the past few years in DeFi. We are forever grateful for the opportunity. We just wanted to say thank you for accepting us with open arms and supporting us every step of the way.
We plan to stay close and continue to help and contribute to the Yearn ecosystem in one way or another. We still share the same ethos and vision, and want to see the Yearn dream succeed. That part never changed, and never will.
What happens next?
Effective immediately, we will deleverage all vaults, turn off all fees and slowly wrap up the technical tasks in the background, preparing for a full shutdown by the end of the year. We want to give everyone enough time to withdraw, so the front-end and contracts will remain operational until all funds are withdrawn. After winding down, we will return the rest of our treasury, including all proceeds, back to the Yearn treasury.
If you have ANY questions or you just want to say goodbye, please visit the Yearn Finance discord channel #tesseract https://discord.gg/gcdmrYbU
Thank you for joining us on this remarkable journey.
End of transmission.
