To Our Loyal Royale Community
This announcement is regarding a technical issue that was recently confirmed having affected our BSC Liquidity Providers and the subsequent impact on the RPT staking reward structure. The technical issue impacts BSC Liquidity Providers only — Ethereum and Polygon liquidity providers are unaffected.
The Royale BSC Liquidity Pool structure utilised Ellipsis Finance, an authorized fork of Curve Finance that runs on the Binance Smart Chain. This use case enabled our community to participate in the Royale ecosystem on BSC by providing stablecoin liquidity in order to earn EPS rewards along with additional Royale RPT staking rewards in ROYA. Rapid Innovation, the developer house that we contracted with, was in charge of developing, implementing and maintaining this process.
On 31st of March 2022, Ellipsis Finance performed a migration on their platform, upgrading from V1 to V2 and changing the token address from EPS to EPX. As a result, the Ellipsis Finance smart contract was broken due to an unforeseen technical bug. When a user attempts to withdraw their tokens, the smart contract tries to stake earned EPS tokens which in turn calls an invalid function that points to the old token address, leading to a failure of transaction and inability to withdraw their stablecoins.
We have attempted to reach out directly to Ellipsis Finance for support and further comment; their response was that since they have migrated to a brand-new token address there is nothing that can be done to recover the funds currently locked inside of the smart contract linked to the Royale BSC Liquidity Pool. Royale is not the only protocol affected by this technical issue, but still no assistance will be offered by the Ellipsis Finance team.
In short, unfortunately this means that all stablecoins within the Royale BSC Liquidity Pool contract are locked forever. Stablecoins within the Ethereum and Polygon LP contracts are unaffected and stablecoins are accessible.
This contract holds all Royale LP Royale funds: https://bscscan.com/address/0xcce949de564fe60e7f96c85e55177f8b9e4cf61b
This fund holding contract interacts with the first contract when withdrawing/adding liquidity: https://bscscan.com/address/0x4076cc26efee47825917d0fec3a79d0bb9a6bb5c
What can we do about it?
In order to provide some form of compensation to our BSC Stablecoin LP users, as from 1st July 2022 all future ROYA rewards for RPT staking on Ethereum and Polygon will be redirected to the BSC RPT staking contract only, where the stablecoins are locked. This means users staking RPT on Ethereum and Polygon will no longer receive ROYA rewards, however, yield from the current iGaming loan and Curve strategies will still be deposited for Ethereum and Polygon LPs but the ROYA rewards for RPT Staking will cease altogether.
We sincerely apologize for the inconvenience this has caused to our community and specifically the BSC Liquidity Providers who have been impacted.
This incident will not impact the overall progress of the Royale project as we continue to develop the IGO launchpad. We’ve had significant progress the last few months which you can read more about here:
Once the launchpad is ready and set to go live we are aiming to launch cross-promotional marketing activities with our partners and onboard new games planning to launch in the coming months. Stay tuned for new updates!
About Royale Finance👑
Royale Finance is an industry-focused decentralized lending protocol. Its purpose is to create Web 3.0 decentralized liquidity funding solutions using DeFi primitives to support the innovation of gaming products and platforms.