Delisting Process on Homora V2

Delisting Process on Homora V2

From now onwards, Homora V2 will be implementing a Delisting Process to protect users from potential hacks through price manipulation. This will mainly impact farm pools.

Starting today, we will begin the delisting process for:

  • USDC.e/DAI.e pool on Trader Joe &
  • AVAX/DAI.e on Pangolin.

The above-mentioned pools will be delisted on June 9th, 10AM UTC.

Criteria for Pool Delisting

In order to evaluate whether a pool should be delisted or not, there will be 2 main criteria.

  1. The underlying pool TVL falls below $200,000
  2. The underlying pool is unable to leverage over 1X for over 3 months (considered on a case-by-case basis)

UI Changes on the DApp

Once a pool qualifies for delisting, we will give around 1 week to notify all users. Users who have positions opened on the delisted pool will be given a WARNING sign next to their Yield Farming page. On the farming page, users will only see the option to close the position. This is to encourage you to close your position before the pool is removed from the contract.

After the pool is delisted, the pool will no longer be listed on the Farm Pool page and all remaining positions will become liquidated.

Sample of the UI impacted users will see

During A Normal Delisting Case

When a pool qualifies for delisting, we will give 7 days notice in advance for users to close their positions. Users will have to close their positions to prevent forced liquidation.

For users who closed positions within 7 days, no liquidation bonus will be deducted.

After 7 days, 5% of the debt size will be deducted to be given out to liquidators as a liquidation bonus.

During An Emergency Delisting Case

To prevent crises like UST depegging from impacting Homora users, there will also be emergency measures to delist related assets and pools.

For delisted lending assets, impacted users will only be able to withdraw their assets on Lend Page.

For farming pools impacted by the delisted asset, related pools will be forced delisted immediately. Impacted users will still be able to withdraw remaining assets on Your Positions page.

During an emergency delisting case, liquidation will happen immediately and no liquidation bonus will be deducted.

During A Relisting Case

Should the delisted pool happen to recover from the criteria, for example regain TVL past $200,000 or gain momentum again, we’ll consider relisting the pool again on a case-by-case basis.

Once we are able to make sure the TVL exceeds a safety threshold that reduces the risk of getting hacked, the delisted pool may be relisted again.

Moving Forward

With the recent incident of UST depegging, our team will continue to work on ways to minimize risks for our users. As Homora V2 prides itself in its ability to leverage yield farms, we also want to ensure all pools provide high profiting opportunities while ensuring the highest security to users. As for the asset price, we continue to strengthen our price feed using Alpha Oracle Aggregator which utilizes solutions from BAND protocol and Chainlink.

About Alpha Venture DAO (Previously Alpha Finance Lab)

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