After witnessing an impressive trading volume of 280,000 ETH (equivalent to $518,000,000) during the V1 private beta phase, it has been decided to discontinue closed beta contracts.
To ensure the stability of the protocol and safeguard the interests of users, the V1 contracts have been paused with immediate effect. It is important to note that all user margins (WETH) are returned so that no user will lose their initial collateral or margin.
The decision to pause the V1 contracts has several reasons. First, the insights gathered over the last seven months of the private beta phase have shown that the V1 vAMM (virtual automated market maker) model is not scalable. In addition, internal team errors related to liquidation logic and accounting errors have led to bad debts building up. To deal with this, the team has decided to step in and stop the losses.
The closure of V1 paves the way for the highly anticipated launch of nftperp V2. By pausing the contracts, the platform aims to prevent users from suffering financial losses and losing their funds. Closure of the market at current prices would have led to unfavorable results for users. The team recognizes that allowing a race to start first would not be a satisfactory solution for all participants. By accurately identifying user margin deposits, nftperp will refund all users’ collateral to ensure their funds are protected.
In a positive move, users with a negative unrealized PnL (profit and loss) will have their unrealized losses forgiven and get their full margin back. On the other hand, users with positive unrealized PnL will get their margin back along with their pro-rata share of VNFTP tokens, corresponding to their unrealized gains. It is worth noting that all position states are saved from block timestamp #: 108596965.
Looking ahead, nftperp is excited about the future prospects of the protocol and the launch of V2. With dedicated resources focused on the next iteration, the team is striving for an enhanced trading experience and further progress in the NFT perpetual trading space.
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