Shade Protocol Community,
On August 2nd, as detailed in the Liquidity Management Response to Kujira Ecosystem Instability forum post, Shade Protocol moved to unbond its SHD <> KUJI protocol owned liquidity in order to protect the Dao against significant impermanent loss in the face of the Kujira ecosystem’s recent instability.
While the Kujira ecosystem finalizes its remediation plans for managing bad debt, Shade Protocol is planning to deploy its wholly owned KUJI liquidity to the KUJI <> ampKUJI pair on ShadeSwap. By deploying KUJI liquidity to this pool, Shade Protocol will still be able to utilize it’s POL without exposing the DAO to unexpected IL during this volatile period.
ampKUJI is an autocompounding liquid staking derivative for KUJI, that is native to the Kujira L1. ampKUJI is a product of Eris Protocol, a leading LST provider in the Cosmos Ecosystem.
Users can learn more about Eris Protocol liquid staking derivatives on their website including their audit reports
The Shade Dao currently custodies ~ 29,100 KUJI. The following plan for deployment is as follows:
- Bridge 14,550 KUJI to Kujira and liquid stake the KUJI for ~ 13,750 ampKUJI, the Eris Protocol LST for Kujira.
- Bridge the ampKUJI from Kujira back to Secret Network
- Provide ~14550 KUJI and 13750 ampKUJI to the KUJI <> ampKUJI LP on ShadeSwap
During this time, protocol contributors will be tracking volume and fee generation for the KUJI <> ampKUJI pair and analyzing its performance relative to the historical SHD <> KUJI pair performance for better understanding of which liquidity deployment is better for the protocol.
Onwards and Upwards,
Shade Protocol Contributors