Announcement: Fixed Forex

The team will reset the balance of all Fixed Forex assets (ibEUR, ibCHF, ibGBP, ibAUD, ibJPY & ibKRW) in circulation towards zero. This decision stems from several factors;

i) Lack of user demand for borrowing, with total borrowing at approx. $3m

ii) The current uncertain status of Iron Bank, the exclusive issuer of Fixed Forex’s assets

iii) The decision of the Synthetix team to withdraw support for spot synths on L1

Actions Taken & Planned

• Gauges for CRV emissions to all liquidity pools containing Fixed Forex assets will be disabled. A vote has been created through Curve governance to enable this change
• The Treasury has reduced borrowing of Fixed Forex assets previously enabled via the Fixed Forex AMM, reducing treasury outstanding borrows to $2.6m
• Liquidity in Iron Bank Fixed Forex lending markets will be reduced, new borrowing will be paused or disincentivized

Recommended Actions for Fixed Forex Asset Holders

• Users borrowing via Iron Bank should aim to repay their loans promptly
• Users who acquired assets through the Fixed Forex’s AMM are encouraged to swap their holdings. If liquidity on Curve is unavailable, users may contact the team directly via Discord or Telegram to arrange swaps, up to the $2.6 million limit borrowed by the treasury

Implications for the Protocol and Stakeholders

• The protocol team will evaluate the feasibility of relaunching multi-currency stablecoins based on user demand and potential revenue opportunities
• Vested token holders will see a decrease in revenue as borrow volumes decline
• Fee distributions to vested token holders will be paused due to the discontinuation of Synthetix atomic swap functions which impacts the functionality of reward distribution contracts
• The team will explore alternative methods for fee distribution based on remaining revenues, with updates to be provided through official channels
• Revenues generated via the Fixed Forex solution will be retained by the protocol treasury until a new distribution method is established
• The team will maintain their substantial holdings in Curve’s voting assets (2.1 million veCRV and 887,000 vlCVX), which may be used to enhance gauge voting power or generate revenue through vote bribing

Follow-up for Users

Fixed Forex asset users, whether borrowers or token holders are advised to adhere to the guidance provided and close out their positions using the described methods.

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