After much consideration there is unfortunately no viable future for VenomDAO.
There’s still no resolution to Harmony’s bridge hack months after it happened, and it looks like there might never be one. Harmony’s VP of engineering has stepped down, numerous core employees and contributors have already left Harmony, and needless to say, the future of DeFi on Harmony is looking as bleak as ever, with little to no hope of ever recovering.
The core purpose of a DEX is to allow for assets to be exchanged in a decentralized manner.
Unfortunately there barely aren’t any exchangeable assets left on Harmony at this stage since most of them have been depegged.
At the same time most projects are migrating away from Harmony which means there are fewer and fewer native projects and tokens remaining on the chain.
Nearly every other competing DEX on Harmony have also realized this and have either started their migration elsewhere or have decided to terminate their projects.
Viperswap
Viperswap started as an experiment 18 months ago with the intention of experimenting with a unique tokenomics model specifically tailored to a low fee alternative L1.
While the lock/unlock model initially had some success and generated countless of forks on Harmony and other chains, with results in hand one can conclude that the model unfortunately wasn’t viable long term.
Viperswap has clearly failed, our multi-chain expansion to Binance Smart Chain as Cobraswap was likewise a failure, and nearly every Viperswap fork on Harmony and other chains have also failed spectacularly.
When even such a brilliant and hard-working team such as DFK have been struggling with the model despite all the value they’ve created, and eventually pulling the plug on the JEWEL unlock altogether — we’ve likely seen the final nail in the coffin for this tokenomics model.
There is no point of redeploying a broken model to a new chain.
Most L1s that are still thriving already have major DEX:es such as Uniswap, or native DEX:es such as e.g. Trader Joe with a high degree of stickiness/liquidity moats around them. These projects are furthermore supported by VC:s and huge communities — basically borderline impossible to compete with.
Additionally, there’s also no point of porting over to some random unknown chain either. The L1 rotation game has been winding down for quite a while now, DeFi liquidity has been sucked out of most L1 ecosystems, and the latest set of bridge hacks have completely ruined certain L1s. A lot of these L1s are likely also already struggling with funding or will struggle with funding soon. We’re in a deep bear market after all.
VenomDAO has always been a pure DeFi play and all our products have focused on incorporating various DeFi mechanisms. Since these products are largely mashups and/or forks of other established products on other chains, they largely already exist elsewhere, especially on the L1s that are still relevant. The sad reality is that there’s no product/market fit to be had if we’d venture outside of Harmony — and there’s no point remaining on Harmony either since DeFi on Harmony will likely never recover.
Comfy Money
Comfy Money was intended to support Harmony Protocol by acting as a mirrored, liquid asset to $ONE.
Algorithmic seignorage tokens have struggled to maintain their pegs and $COMFY is no exception. This leaves the question — how do we restore peg?
Most similar projects have taken the route of launching more seignorage protocols, with the aim of being pegged to the original token.
We don’t believe this would work for Comfy Money as:
- The future outlook for Harmony is very bleak.
- The user base of Comfy Money is relatively small compared to other ecosystems.
- This method has not managed to restore pegs for others who have attempted this.
Confidence in tokens which are pegged algorithmically has fallen to all time lows this year, and with the negative macro outlook we don’t anticipate this to change in the near future.
Migration to a new blockchain wouldn’t make sense. Comfy Money was intended to be pegged to $ONE, and other blockchains already have an abundance of seignorage protocols which would make it very difficult for Comfy Money to gain any traction.
What happens next
Viperswap & Cobraswap:
- All remaining locked VIPER tokens will unlock at block 31373604 / ~00:00 UTC on the 15th of September.
- All remaining locked COBRA tokens will unlock at block 21340089 / ~00:00 UTC on the 15th of September.
- The Viperswap and Cobraswap UI:s will remain hosted until the 7th of October. After that date you will have to exit farming/LP positions on Viperswap/Cobraswap by forking the UI repo on Github and running the UI locally, or directly interacting with contracts using Harmony’s explorer or BSCScan. We highly recommend people to exit their positions ASAP while the UI is still hosted on our domains.
- For those of you intending to remain on Harmony we’d recommend moving liquidity to FuzzSwap since that’s the only DEX (that we know of) that is committed to remain on Harmony.
Comfy Money:
We will no longer be supporting Comfy Money and the following changes are effective immediately:
- The lock up periods in the Zen Den have been disabled. You can claim rewards and/or withdraw staked $CSHARE immediately.
- Although we are under peg, if you hold $CBOND you can now exchange $CBOND for $COMFY at a 1:1 ratio via the Bonds page.
- The amount of purchasable $CBOND per epoch has been reduced to the minimum limit.
Liquidity and volume for Comfy Money has been relatively low since the very beginning. For this reason the treasury has not accumulated funds as further selling would have had a detrimental impact on holders. The 21,042 $ONE held by the treasury will be used to purchase and burn $COMFY over the next few days.
From the 7th of October you will no longer be able to access https://comfy.money. Also from this date — epoch changes will no longer be automatic and you (or another user) will need to call allocateSeigniorage() on the Treasury contract if it needs updated.
All Comfy Money contracts are verified. If you wish to continue interacting with Comfy Money you can do so indefinitely via the Harmony Explorer.
