Sunsetting Steakbank Finance
After a year of building a liquid derivative token for BNB, we decided to sunset the Steakbank Project. Here’s why.
After almost 1 years designing, modeling, implementing, deploying, building, and managing the Steakbank Finance Project, the team decided it is in the community’s best interest to sunset the Steakbank Finance (SBF) project and to return all the funds to the participants.
The SBF project was meant to empower the BNB community, allowing them to earn multiple yields streams on top of validating yields, and reducing the bonding period of BNB on delegators.
The team made multiple updates, improving the staking/unstaking process by making it faster, UIUX updates, and tokenomics revamp to improve TVL. At the same time, the team was also trying to bootstrap this community to a huge enough TVL, such that it would be able to have enough BNB to become a validator itself, and thus provide even more sustainability, and accrue more value to the SBF token holders.
However, given the concerns that despite the BNB staked and raised, it is not enough to become the top 21 validators, the team also reached out to several parties to receive more funding but ultimately it was still not sufficient. To improve transparency, we also released our code to the public, despite seeing a few similar forks in the market.
We have also approached multiple projects on BNB chain to build on LBNB, and provide multiple yield on top of the validating yields, but traction has not been good. Despite that, our users are still able to utilize Steakbank Finance to get the highest yield among all the validators, in a fully automated manner, and also early unstaking. It has always been a goal that SBF was created to be a useful tool for the community.
While the team still believes that SBF solves a real problem, we decided to sunset the SBF project, due to headwinds of being unable to secure a validator slot.
Below we outline:
- SBF’s Goal
- Sharing Lessons and Headwinds of SBF
- Sunsetting & Remediation Process
SBF’s Goal
The conception of Steakbank Finance idea, was to provide the multiple benefits to BNB holders such as flexible unstaking period, and additional yields on top of validators staking.
Sharing Lessons and Headwinds of SBF
As the product was launched and built, the core capabilities of minting/redeeming, together with LBNB receiving validating yields, are already functional. However, the next step is to build in more utility into LBNB, which the team seeked out more BNB native apps to build on top of LBNB. Some teams while receptive, agreed with the partnerships, but also pointed out that they would start building on it upon seeing more liquidity between the LBNB/BNB pair. Similarly, the BNB staked are not enough to secure a slot among the 21 validators, which we were hoping to achieve, which the team intended to redirect the revenue back to the stakers and accrue even more value.
TL;DR:
- LBNB/BNB pool was not big enough for partners to start building on top of LBNB
- BNB staked was not big enough to secure a slot on the top 21 validators.
Nevertheless, SBF was designed to be a coordination tool empowering the Liquid staking BNB ecosystem, and if there is not enough demand, it is hard to force the partners to build applications upon the LBNB upon it. Also without securing one of the 21 slot for validating in order to generate excess revenue to accrue more value into SBF, and purely using incentive rewards, the capital would be mostly internal circulating, and end up being very reflexive, leading to a downwards spiral. And for this reason, the team thinks that it is best to sunset Steakbank Finance and reimburse the remaining un-utilized funds.
Sunsetting Process
We will also share in the Steakbank finance Telegram chat the exact steps of the sunsetting process, but in the coming days and week:
- All SBF holders should, unstake all their ASBF into SBF.
- Unstake all your SBF LP from the LP farm and remove the Liquidity pair.
- Claim all their rewards.
- Unstake all LBNB and get back your BNB.
(a ~ 1week period will be given to unstake SBF, allowance will be given until 8/6/2022, UTC time 23:59)
As for the sunsetting process, Steakbank Finance would return the funds in the treasury , together with the initial seed liquidity pool, which consist of the BNB that was bought to provide liquidity to the LBNB/BNB pool.
Only circulating tokens including private investors (only 80% weightage on vested token) and users who bought on the market and farm rewards before this announcement are eligible for the airdrop. Do not further buy SBF tokens as they may not be eligible for the refunding airdrops.
The refunds will only be based on the SBF amounts in the wallet during the time the snapshot is taken. Therefore, users that do not claims rewards, and yet to unstake in the 7 days, will not be applicable for the refunds.
As all SBF token holders will be proportionally granted a stake to treasury, based on how much SBF they hold. “Locked” tokens (refering to tokens which are still under vesting), will hold a weightage of “0.8”, compared to a publicly traded SBF, which will have a full weightage of “1”, per token.
More importantly, the Team did not sell a single token during the period of building the project. The team and all tokens controlled by the team are excluded and will not be re-imbursed.
The team address can be seen here: 0xc8e515a5dA7A97b63B2de486E377A3a08D3F4ADD
(Consisting of 2,308,219,210.24 SBF tokens)
As the initial team token constitutes to 2,500,000,000 SBF tokens. The remaining 191,780,789.76 SBF tokens are locked till infinity, which are essentially burned, as explained in this article:
https://medium.com/steakbank/steakbank-finances-tokenomics-and-upcoming-token-sale-dac4c594c1f5
The tokens can be seen here:
https://bscscan.com/token/0xbb53fcab7a3616c5be33b9c0af612f0462b01734?a=0xc7C13f002A62704f297067F89880332f4AF56Ad5
It has been a tough journey, and hope the sunsetting of this project, and redistribution of the funds would tide our users through the tough times of the current bear market.
