Finalizing the Transition: ShadeSwap Resumption & Accelerated Feather Snapshot Timeline

[CarterWoetzel]

TLDR

• ShadeSwap trading resumes Friday, July 10 @ 6:00 PM GMT+0 — SILK state is essentially unfrozen as trading for SILK will resume at the same time, allowing users to wind down and exit positions. Use this window to exit everything.

• The SHD → Feather ($FTR) burn deadline has moved up to August 5, 2026 (previously October 15). The burn contract closes permanently on that date.

• Why: SCRT Labs is migrating $SCRT to Arbitrum and dropping official Cosmos L1 support on September 1, 2026. Any tokens left inside smart contracts at their September snapshot will be more than likely permanently lost.

• What to do today: Begin unstaking SHD (7-day unbond) and stkd-SCRT (21-day unbond) immediately. On Friday, withdraw all LP positions, close SILK/ShadeX lend positions, and unwrap all SNIP-20 assets back to native form.

• Final step: Once liquid, burn your SHD via the official burn contract ( Shade App ) with your verified EVM address before August 5 to qualify for the $FTR allocation. This is one-way and irreversible.

• Axelar exploit update: Proposal #490 (freeze hacker funds) passed July 5 with 99.98% YES — encouraging, but non-binding. Remediation will follow its own track; Shade can’t stay frozen waiting for it.

Dear Community,

The digital asset landscape moves fast, and the past 48 hours have fundamentally altered the timeline for the Cosmos ecosystem. Following the announcement from SCRT Labs regarding the complete migration of the $SCRT token to Arbitrum and the cessation of official Cosmos L1 support on September 1, 2026, the Shade team has been working around the clock to evaluate what this means for our community, our infrastructure, and the safety of user funds.

Our primary mandate is protecting the continuity of what we are building with Feather, while providing a clear, pragmatic path out of the legacy Shade ecosystem.

To achieve this, we are announcing three critical updates:

1. The resumption of trading on ShadeSwap this Friday, July 10, 2026, at 6:00 p.m. GMT+0.

2. The unfreezing of SILK state (ability to acquire SILK to repay loans) due to compressed Secret Network timelines.

3. The acceleration of the final SHD to Feather ($FTR) snapshot deadline to August 5, 2026.

Below, we break down exactly why these choices were made, how they mitigate systemic risk, and the immediate steps you must take to secure your assets.

1. Resuming ShadeSwap Trading (Friday, July 10th @ 6:00 p.m. GMT+0)

In our previous communications, we noted that Shade Protocol applications would enter a wind down maintenance mode. However, given that users need to urgently exit liquidity pools, settle lending positions, and convert privacy wrapped tokens back to native assets before the September base layer migration, leaving the community stranded without internal liquidity is not an option.

Effective Friday, July 10, 2026, at 6:00 p.m. GMT+0, trading on ShadeSwap will officially resume.

Why We Are Reopening the Swap

• Orderly Off Ramping: Users currently sitting in cross-margin lend positions, yield strategies, or isolated liquidity pairs require a functional AMM interface to cleanly unwind their positions.

• Unwrapping & Liquidation: With the base layer fundamentally shifting, standard sSCRT, SNIP-20, and other privacy-wrapped tokens must be converted back to native assets. ShadeSwap will serve as the primary clearinghouse for users to execute these transactions safely.

• Fair Price Discovery: Reopening the pools ensures that remaining holders can trade out of non-native assets at market-determined rates rather than facing permanent capital locking.

Crucial Warning: Do not leave assets sitting inside ShadeSwap liquidity pools or smart contracts. As explicitly detailed in the SCRT Labs migration brief, any tokens held inside contracts at the time of their September snapshot will be permanently lost. Use the reopening of ShadeSwap to clean up your portfolio immediately.

THE “EXIT EVERYTHING” MANDATE

Do not leave capital sitting inside any Shade Protocol feature, smart contract, or pool. As explicitly detailed in the SCRT Labs migration brief, any tokens held inside contracts at the time of their September snapshot will be permanently lost.

When ShadeSwap reopens this Friday, you must immediately begin to close out EVERYTHING:

• ShadeSwap LP Positions: Withdraw 100% of your liquidity from all pairs.

• SILK Lend Positions: Repay outstanding SILK debts, close your collateralized positions, and withdraw your assets.

• ShadeX Positions: Close out any open lending, borrowing, or collaterals.

• Staking & Derivatives: Begin the unstaking process for SHD (7 days) and stkd-SCRT (21 days) immediately.

• Wrapped IBC Assets: Unwrap all privacy-wrapped tokens (sSCRT, sATOM, sUSDC, sINJ, etc.) back to their native, public forms and bridge them out of the network.

• Enter into the SHD<>FTR burn contract as soon as possible to be included in the snapshot

2. Axelar Remediation & The Reality of the SILK Freeze

Up until now, the ShadeDAO has kept the state of SILK and the Shade app frozen following the $4M Axelar–Secret IBC bridge exploit in June. We were intentionally waiting for definitive clarity on asset recovery and remediation paths from our infrastructure partners.

We are incredibly encouraged by the recent passage of Axelar’s Signaling Proposal #490: Freeze Hacker Funds and Recustody to a Trusted Distributor, which passed on July 5th with a staggering 99.98% “YES” vote. This successful vote establishes a clear, formal community mandate to permanently freeze the attacker’s wallet (axelar1hzra9z4zn8q0w8f3dj2wnw0xgetu8dfdhl6ad8) and prepare a transparent framework to return recovered assets to affected users.

However, we must pair our optimism with hard engineering candor: Proposal #490 is a non-binding text proposal. It carries no automatic onchain actions, and the subsequent binding follow up proposals required to name a distributor and finalize the redistribution mechanics will take time to vet and deploy.

With Secret Network dropping official L1 support on September 1st, Shade no longer has the luxury of time to keep SILK and ShadeSwap frozen.

The ShadeDAO cannot wait indefinitely for secondary distribution plans to materialize while the underlying blockchain infra shuts down on an accelerated timeline. To protect users from having capital permanently trapped inside a frozen protocol on a sunsetting L1, we must take immediate action. Unfreezing the system and reopening ShadeSwap this Friday allows users to take immediate agency over their remaining positions and exit on their own terms.

3. Moving the Feather Snapshot Deadline to August 5, 2026

Originally, we intended to keep the SHD-to-Feather burn and snapshot contract open until October 15th. However, the operational reality changed overnight. SCRT Labs’ decision to effectively drop official support for the current L1 chain on September 1st introduces massive, unquantifiable existential risks to our protocol if we wait.

To ensure a seamless transition to Feather, the SHD deposit and burn contract will permanently close on August 5, 2026.

The Rationalization for an Accelerated Timeline

We understand that moving a deadline forward by more than two months is aggressive. However, weighing the risks clearly shows that an early cutoff is the only path that ensures protocol survival:

• Avoiding L1 Chaos: When a foundational layer drops support, the risk of validator rebellions, chain forks, RPC infrastructure blackouts, and exchange lockups skyrockets. If the chain halts or fractures while our burn contract is still active, it creates a governance and technical nightmare. We must have a clean dataset locked and secured well before the September 1st migration date.

• The Reality of Attention Dynamics: Our data shows that the vast majority of active stakeholders who care about the future of this protocol are already highly active and paying close attention. Leaving a high risk window open for an extra 60 days to accommodate hypothetical, inactive users puts the entire community’s future allocation at risk.

• Accommodating Unbonding Times: We have carefully balanced this deadline to ensure it remains fair. For example, stkd-SCRT requires a 21 day unbonding period, and staked SHD requires a 7 day unbonding period. Setting the deadline for August 5th gives users who begin unstaking immediately ample time to clear their unbonding lockups and interact with the burn contract.

Critical Action Timeline

To keep things scannable and direct, please adhere strictly to the following chronological milestones:

Step-by-Step: What You Need To Do Right Now

If you hold a balance anywhere within the Shade Protocol ecosystem, follow these exact steps to ensure you do not lose your capital:

Step 1: Unstake Your Assets

Go to the Shade App interface and immediately trigger the unstaking process for both SHD and stkd-SCRT. Because stkd-SCRT takes 21 days to unbond, you must trigger this immediately to ensure your funds are liquid before the August 5th cutoff.

Step 2: Clear Out Smart Contracts & Pools

When trading resumes this Friday at 6:00 p.m. GMT+0, remove all liquidity from ShadeSwap pools. Ensure you hold no wrapped assets inside lending contracts. Move everything to a native, self-custodied wallet balance.

Step 3: Execute the One Way Feather Burn

Once your SHD tokens are liquid in your wallet, visit the official Shade Burn Contract Interface. Deposit your SHD, input your verified EVM (Ethereum/Arbitrum) address, and submit the transaction. This is a one-way, irreversible burn that permanently registers your on-chain commitment for the future Feather token allocation.

Putting the Past Behind Us

This situation is not a crisis of our making, but it is a reality we must steward responsibly. Secret Network is changing its architecture, and as the ShadeDAO dedicated to protecting your commitment, our job is to cut bait from a deteriorating infrastructure layout before it impacts the integrity of Feather.

Feather is working. With over $15M in TVL across multiple vibrant chains, the future of our fixed-rate lending architecture and liquidity syndicates is incredibly bright. By consolidating our snapshot data cleanly on August 5th, we completely insulate the future of Feather from whatever volatility, forks, or technical friction hit the Cosmos L1 layer later that month.

Let’s move fast, act with precision, and build what comes next.

Official updates can be found here: Telegram: View @ShadeProtocol

— Shade Protocol

[Virgil_J_Veira]

What is the offcial evm address?

[CarterWoetzel]

Burn Deadline Extended to August 21

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TLDR

• The SHD → Feather ($FTR) burn deadline is moving from August 5 to August 21, 2026 at 18:00 GMT+0. This is the final, permanent hard cutoff. There will be no further extensions.

• Full Web3 interface for Shade is launching on August 5th.

• Why: overwhelming community demand. The 7-day SHD unbonding period left a meaningful cohort of holders short on runway to unstake, get liquid, and burn in time. We heard you.

• If you’re in by August 5, you are already captured. We have been taking rolling snapshots of the burn contract, and everyone who has burned is already secured in a completed snapshot. You do not need to do anything else.

• If you burn between August 5 and August 21, understand the risk. We will keep taking rolling snapshots through the 21st, but we cannot guarantee Secret Network’s block uptime or the availability of surrounding infrastructure during that window. Burn as early as you can — do not wait until the 21st.

• Nothing else about the migration changes. SCRT Labs is dropping official Cosmos L1 support on September 1. Any tokens left inside smart contracts at their September snapshot will more than likely be permanently lost.

• The governance picture is genuinely unsettled right now. There is heavy tension across the ecosystem and no clear consensus on what happens next. That uncertainty is not background noise — it is the risk to anyone burning after the 5th.

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Dear Community,

Two weeks ago we compressed the Feather snapshot deadline to August 5 to get a clean dataset locked well ahead of Secret Network’s September 1 L1 sunset. That decision was correct, and we stand by the reasoning behind it.

But the community response has been loud and consistent: the 7-day SHD unbonding lock, stacked on top of the wind-down steps, left a real group of committed holders scrambling. People who fully intend to transition to Feather were at genuine risk of missing the window through no fault of their own — simply because they started unbonding a few days later than ideal.

We would rather give those holders room to make it than lock a slightly cleaner dataset a week earlier. So we are extending the burn.

Here is exactly what is changing, what is not changing, and the honest tradeoff that comes with the extra time.

1. The New Deadline: August 21, 2026

The SHD deposit and burn contract will now permanently close on August 21, 2026, an eight-day extension from the previous August 5 cutoff.

This is the final deadline. We are not building in any further flexibility, and no additional extensions will be granted. When the contract closes on the 21st, it closes for good, and any SHD that has not been burned will not qualify for the $FTR allocation.

The reason for the extension is narrow and specific: the length of the SHD unbonding period. A 7-day unbond, plus the time needed to unwind LP and lend positions and get fully liquid, meant the August 5 date was unforgiving for anyone who came to the process late. August 21 gives those holders the runway to finish.

2. Rolling Snapshots — What “In by the 5th” Actually Means

We have not been waiting for a single deadline to capture the state. We have been taking rolling snapshots of the burn contract on an ongoing basis.

Practically, this means:

• Everyone who burns on or before August 5 is already secured. Your burn has been — or will be — captured in a completed snapshot, and that record is safe regardless of what happens to the network afterward. If you are in by the 5th, you are done. You do not need to monitor anything or take further action.

• Between August 5 and August 21, snapshots continue. Every burn in that window will be picked up by a subsequent rolling snapshot, exactly as before — as long as the network is healthy enough to process your transaction and for us to read it.

That second condition is the crux of this update, so we are going to be direct about it.

3. The Honest Caveat: We Cannot Guarantee the Network After the 5th

We built the original August 5 date specifically to lock our dataset well before any September 1 migration turbulence. By extending into the second week of August, we are trading a margin of safety for a margin of time.

We are giving you that time. But we have to be candid about what it costs.

For any burn after August 5, we cannot guarantee Secret Network’s block uptime or the availability of the surrounding infrastructure — RPC endpoints, indexers, and the tooling the burn flow depends on. When a foundational L1 approaches a support cutoff, the risk of validator churn, degraded block production, RPC blackouts, and general instability rises sharply and unpredictably. If the chain halts, stalls, or the infra you need to submit a burn goes dark during the August 5–21 window, we may not be able to help you complete or recover that transaction.

And this is not a distant, theoretical worry. Right now there is significant governance tension across the ecosystem, and no one — including us — can tell you with confidence what happens next. The path from here to the September migration is contested and unsettled, and that lack of consensus is precisely the danger. Contested governance on a sunsetting chain is how validators drop off, how RPCs go dark, and how a network becomes unreliable with little warning. The volatility itself is the direct risk. We are not going to pretend we can forecast a situation that the people running the infrastructure cannot forecast either.

To be unambiguous:

• Burning by August 5 = guaranteed capture. Your allocation is already locked in a completed snapshot.

• Burning August 5–21 = we will still snapshot you, but at your own network risk. If Secret’s infrastructure degrades before your burn confirms, that is a scenario outside our control.

The extension exists to give latecomers more of an opportunity, not to encourage anyone to wait. If you can burn now, burn now. Every day you delay past the 5th is a day you are relying on a sunsetting chain to stay up.

4. Everything Else Stands

None of the underlying migration reality has changed:

• SCRT Labs is migrating $SCRT to Arbitrum and dropping official Cosmos L1 support on September 1, 2026. Any tokens left inside smart contracts at their September snapshot will more than likely be permanently lost.

• ShadeSwap and SILK state remain unfrozen so you can unwind positions and get liquid. Use them to exit cleanly — do not leave capital sitting inside pools, lend positions, or wrapped assets.

• stkd-SCRT still carries a 21-day unbond. If you are still holding it and have not started unbonding, the math no longer works for the burn window — you should have triggered it already. SHD’s 7-day unbond is the one the August 21 date is built around.

5. What To Do Right Now

If you have not yet transitioned, do not treat the extension as breathing room. Treat it as a final grace period on a chain that is winding down.

1. Unstake immediately. Trigger the 7-day SHD unbond today. Every hour of delay eats into your safety margin against the 21st.

2. Clear your contracts and pools. Withdraw 100% of ShadeSwap liquidity, repay and close SILK / ShadeX lend positions, and unwrap all SNIP-20 / privacy-wrapped assets back to native form.

3. Burn as early as you can. Once your SHD is liquid, visit the official Shade Burn Contract interface, enter your verified EVM address, and submit the one-way burn. Aim to be in by August 5 to lock a guaranteed snapshot. If you genuinely cannot, burn as far ahead of August 21 as possible — do not gamble on the network’s final days.

Closing

We extended this deadline because the community asked, and because the people asking are exactly the committed holders Feather is being built for. Giving them the room to make the transition is worth the added complexity.

But we owe you the full picture, not just the good news. The extra week is real, and so is the risk that comes with operating on an L1 in its final weeks of official support. Everyone in by the 5th is already home free. Everyone after that: we’ve got your snapshots rolling, but the clock — and the network — are no longer fully in our hands.

Get liquid. Burn early. Don’t wait for the 21st.

Feather is working, with lending live and TVL growing across multiple chains. Let’s finish the transition cleanly and build what comes next.

Official updates: Telegram — @ShadeProtocol