Call to Action for Terra LP'ers

An important update for Terra Liquidity Providers on THORChain. The time to exit the LUNA-UST pool is now.

If you have LUNA or UST, you’ll have time to withdraw from the pool and still be eligible for Terra’s May 27 (GMT+8) Airdrop Snapshot (refer to the Terra Ecosystem Revival Plan 2 document, and TheCryptoBasic article for details).

Background

Currently, all Terra trading is halted within the network due to the network’s auto-halt feature. Due to the THORChain network’s security mechanisms, the chain auto-halted. This was not a centralized decision; the auto-halt feature is a part of the existing security feature set of THORChain

The Present

It appears the Terra chain will fork on 2022–05–27 at 03:59:51 UTC+0800 (2022–05–26 at 19:59:51 UTC).

Soon, the Terra chain will be re-activated to allow withdrawals under strict rules, based on the same way Liquidity Providers entered the pool initially. No additions or swaps will be allowed when this occurs.

Situation for Liquidity Providers:

1.) Symmetrical Addition (DUAL-SIDED)

Your RUNE portion will be returned to you when you do a Symmetrical withdrawal. Asymmetrical withdrawals will be disabled.

2.) Asymmetrical Addition RUNE (RUNE-SIDED)

You will only be able to withdraw Asymmetrically.

3.) Asymmetrical Addition ASSET (ASSET-SIDED)

A THOR address is not registered so RUNE cannot be returned. A pull request is being worked on which would allow Liquidity Providers to register a THOR address, thus permitting Symmetrical withdrawal.

Impermanent Loss Protection

Regardless of the withdrawal type, there will be Impermanent Loss Protection (ILP). As the LUNA and UST pools are less than 100 days old, full protection cannot be offered. How much protection is granted to the Liquidity Provider will depend on the ILP timer. (e.g. if in the pool for 30 days, you will receive 30% ILP).