Long Awaited Sneak Peek Of The Genshiro Roadmap For Q2 2023 Is Here
There are plenty of updates and HUGE news regarding Genshiro’s future. We have been hinting for some time now that several potential directions are being explored for Genshiro.
Genshiro is migrating to the Kusama parachain
Yes, we will make it soon! (eventually)
As you know, Genshiro has been running as a standalone Substrate-based network with a reliable set of third-party validators since its launch in September 2021. It was linked with the Kusama network through its own parachain and the bridge that was run by the same lineup of validators.
Now we are conducting this migration primarily to complete Genshiro full decentralization: to link it with the shared security mechanism of Kusama and launch full-fledged decentralized governance.
Migration process
We anticipate three phases of migration.
The first one is ‘Preparation’. It is kicking off right after this announcement goes live and lasts until May 3, 2023, at 3 PM UTC. From now, we are suspending liquidity mining rewards. Also, during this period, we ask all users to pay back all their debts on the platform and move all assets from system pools to their wallets or withdraw from Genshiro.
The second phase (called ‘Execution’) lasts 24 hours. We will shut down all transfers and bridging transactions on the standalone chain and execute the following steps:
- Snapshot of all accounts balances
- We cover all remaining users’ debt in the system
- In exchange, we seize the collateral to cover our expenses in this priority:
- LPT0 and EQD collateral to be seized first
- GENS collateral is next, with a 50% discount applied
- Other assets go then without discount
- xDOT collateral goes last at the following conditions:
1 xDOT = 0.836 DOT
1 xDOT2 = 0.809 DOT
1 xDOT3 = 0.783 DOT
- Excessive collateral to be returned to users
Everyone who deposited in the market making pools will get their funds back and they don’t need to take any additional actions.
The third phase is ‘Finalization’. This phase lasts up to three days, and the actual migration happens here. Let’s take a look at each of its steps:
- A second snapshot with no liabilities left in the system
- Accounts and subaccounts migrate to the parachain
- We keep debt generation disabled
- Asset transfers are turned back on
Tips for Genshirians
Firstly, you need to keep in mind that if you don’t pay back liabilities yourself during the ‘Preparation’ phase (until May 3, 2023, at 3 PM UTC), some part of your collateral will be seized to cover all your debt.
If you are fine with this but want to keep some specific assets from your collateral portfolio on Genshiro with you, you will need to withdraw them from collateral pools (including the bailout pool) to your wallet before May 3, 2023, at 3 PM UTC.
Don’t miss to check back on what’s going on with Genshiro after the migration is finalized (teaser: something is in the cooking :)
Why are we migrating this way?
Debt repayment is effectively a long-awaited bailout for some insurers who wanted to opt out but were unable to meet their liabilities and exit. The same for some lenders who are pending their funds from loans that were not repaid yet.
Another reason is halting transactions which is inevitable during this migration. The period of halting can last up to several days until the migration is finalized, and no one can do any transfer on the platform. As you can imagine, keeping open debt positions during this period can lead to system insolvency due to potential market volatility and unresolved margin calls.
What to expect next?
The significant news is that decentralized governance for Genshiro will be up and running after the migration process is complete. This is part of our long-term vision for the project
Also, the team is very excited about a completely new product that is in the final stages of development. The big announcement will be made shortly, so make sure you are following our socials to keep up with our news!
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We are looking forward to your feedback and guesses as to what will come next on Genshiro.
