USDT Vault Bug Fix - Migration & Community Update

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Dear community, we would like to provide you with an official update regarding the SILK minting vaults. Today, the ShadeDAO temporarily froze SILK minting vaults while keeping withdrawals 100% open from start to finish. Our developers identified a SILK redemption bug specifically on the USDT vault. This was tied to a specific variable/config that changed a shared vault ratio.

As of right now, SILK minting will resume on all vaults except the USDT vault. To resolve the USDT vault bug, the ShadeDAO will be launching a new and improved USDT vault (4/20/2023) that patches this bug. Additionally, we will launch fresh vaults with improved safety parameters and flexibility to be able to reduce likelihood of this type of bug in the future and improve any future vault migrations. In the interim (for user safety) the ShadeDAO is disabling deposits of collateral into the USDT vault as well as ensuring that no additional SILK can be minted from this vault. Redemption front-end web page will also be getting migrated and integrated to the new vaults and will be unavailable until then.

Withdraws and repayments remain 100% open on all vaults including USDT.

We encourage users to migrate to the new vaults as soon as they becomes available today. The team appreciates your patience and support during this process. Fresh SILK vaults will be going live soon, and we will keep you updated on any further developments.

Update (4/20/2023 9:27 AM CST): in order to withdraw USDT collateral from the USDT vault, users must pay back all of their debt to migrate safely. If they choose to withdraw USDT before paying off their debt, there is a chance they do not receive the full amount of collateral. As such, we strongly encourage users to migrate in leau of the updated front-end. Front-end changes were put in place to ensure users cannot withdraw USDT before paying off all of their debt - with the current interface funds are safe. Note, the debt repayment does not have to happen all at once. Fully diagnostic update aiming to go live this evening.

Thank you.
Best regards,
The ShadeDAO team

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Is it safe to wait for the new vault? Or should users migrate ASAP?

Thanks!

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Great question octal,

You can migrate whenever you please, there is no rush on this as funds can be withdrawn at any time. If you’d like to wait for the new vault to be available first today, that totally works.

The primary use story potentially impacted was if a user deposited collateral with the current USDT vault bug. The ShadeDAO has disabled depositing collateral from the front-end website, and thus the primary potential impact is protected against. The most vulnerable user right now is anyone that chose an extremely high LTV for their USDT vault. If you are in that position we highly advise you to repay back some of the debt asap since depositing collateral is disabled.

Thank you.
Best regards,
The ShadeDAO team

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Great, thank you for the information!

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For some reason this doesn’t seem to be working for me, the errors states that I cannot withdraw USDT but I’m just attempting to repay silk.

Screenshot 2023-04-21 at 2.20.41 AM
Screenshot 2023-04-21 at 2.20.41 AM926×930 58.6 KB

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I’m with you @octalmage - also having difficulty executing the repay silk contract for the USDT.axl vault.

I’ve repaid debts on other vaults just in case, but that doesn’t seem to help with this error.

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Hello. For those having any issues on the app please join the discord and pose these in the support channel where we can help assist!

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