Dynamic Supply Reborn: Important Announcement
We’ve made some changes to the core protocol to create a longer-lasting ecosystem
It has been 5 days since the launch of Dynamic Supply, a decentralized algorithmic stable coin inspired by Basis & Basis Cash. An organizational restructuring has occurred and the new team led by developer 0x2 has taken over the project. The original team had a successful launch but it was quite short lived. TVL went over $3M and quickly shot back down to just $90,000. It is clear that it was not a sustainable model. But that’s to change.
After we have taken over development, we have seen nearly a 400% increase in TVL in just two days, indicating that significant interest remains in this project. Over these few days, 0x2 and the new team have been working hard to make some improvements in order to prime the foundations of upcoming novel mechanics. Here’s what we’ve done so far as part of this initial process:
New Domain URL
The official website will become https://dyn.supply during the handover to the new team. The old site https://dynamic.supply will redirect to the new site.
New Web Interface
Dynamic.Supply was first launched based on basis cash’s website, to provide folks a familiar and easy to use interface. However, we feel that the market is saturated with forks and clones, and a unique project requires a unique website towards differentiation, faster speed, improved usability.
Epoch Soft Lock
During the initial launch of Dynamic.Supply, users were “sniping” the Reoptimizer’s epochs by buying DSTR at the last second to earn DST rewards, then selling DSTR immediately after. This caused high market fluctuations and price manipulation, which is not healthy for long-term algorithmic stablecoin models. This new short-term locking requirement will also improve the DSTR-DAI liquidity pool.
In order to combat these movements, and improve stability of DSTR, we have implemented an epoch based lock to our reoptimization machine, which currently defaults to 2 epochs. In other words, once you deposit DSTR into the Reoptimizer, you cannot withdraw or claim your rewards unless you cross through 2 epochs (note, if you deposit new DSTR, the clock resets again for the lock). An example of this is if an investor deposits 100 DSTR during epoch 30, they will not be able to withdraw or claim any DST rewards until epoch 32 or later. If they deposit again during epoch 31 or 32, without claiming any rewards, then their counter gets extended, meaning they will not be able to withdraw DSTR or any DST rewards until epoch 33 or 34.
[IMPORTANT] Migration Process
With these upgrades, we have deployed a new Reoptimizer smart contract to reflect the epoch lock upgrade. Because we have an existing reoptimizer contract, which people have already staked DSTR into, that means any existing stakers must migrate their DSTR into the new contract.
Our migration is currently set for after epoch 22 is passed, at 4AM GMT/8PM PT/11PM ET. At this time the original Reoptimizer will stop producing DST rewards and existing stakers should withdraw their DSTR and any DST rewards they may have accumulated and redeposit them into the new contract to maximize rewards (although you can withdraw from the old Reoptimizer at any time, including through the new site which you will be prompted to do so).
Our website migration will take place at the same time, where we will be moving to dyn.supply from dynamic.supply. In the meantime, you can continue visiting dynamic.supply, where you currently interact with the Dynamic Supply protocol. After epoch 22, the countdown on dyn.supply will change into our new site. If you continue visiting dynamic.supply after epoch 22, you will be automatically redirected to dyn.supply.
Looking to the Future
By deploying a new site and a better Reoptimizer to deter epoch sniping, we can lay the foundations for the next critical steps. We intend to build and add unique new mechanics (a Roadmap will be disclosed soon to reflect the updated tokenomics model). The goal is to achieve a balanced tokenomics model in order to capture long term TVL for a healthy ecosystem and long-term stakeholder growth. High TVL allows new products to be subsequently built and ultimately provide value to the community. We look forward to growing with you in DeFi.
