Delisting Tokens

[prasannavl]

With the following news to take Twitter private, which could make it the largest leveraged buyout in history.

While the process of delisting in DeFiChain is being structured, creating this issue to ensure collection of as much meaningful feedback as possible, in line with the efforts to decentralize outward and increase inclusivity in the direction of the delisting process.

The general guiding principles remain in line with other key decisions in the ecosystem:

• Ensure that the user's investment is protected and is able to retain the value of their investments in line with the traditional investment mechanism (if not better).
• Ensure the overall health of the ecosystem.
• Ensure that the process is as hassle-free, pragmatic and seamless as possible that no one is left behind.
• If possible, reduce user actions to the best extent possible.

Listing the various components involved and the high level focus areas:

User-facing components

• dTokens
  • Focus areas:
    • Ensure that the dTokens are redeemable before and after the process in a quick and reasonable way (consider automation)
    • Ensure that most (if not all dTokens) are burnt at the end of the process.
• LP tokens
  • Focus areas:
    • Ensure liquidity is redeemable - as much as possible without unreasonable AMM instability.
    • Reward direction.

Intrinsic components

• Oracles
  • Possibility 1: Oracle as source of truth: Mark oracles with end timestamp and last reported price.
    • Considerations: Additional effort on the oracle maintainers and challenges to ensure convergence of majority with clarity.
  • Possibility 2: On-chain gov as source of truth: Utilize the upcoming on-chain governance to set approx. block to execute the process similar to existing DFIPs, (Note: this can combine possibility 1 to yield better results, just the source of truth remaining with on-chain gov).
    • Considerations: More responsibility on the community, but clarity of truth and convergence of key decisions in one place.
• Vaults
  • Disable further minting.
  • Vaults should no longer accept collateral in the dToken, if it is allowed as collateral.
  • A mechanism to burn all the existing outstanding loans, either through payback or an auxillary mechanism.
• DEX
  • Possibility 1: Consider the DEX as the OTC and leave it open.
    • Considerations: Extreme AMM instability, LP tokens.
  • Possibility 2: Consider auto-close the pool pairs if alternate mechanism for recovery are created.
    • Considerations: LP tokens recovery.
• Future Swap
  • Possibility 1: Future swap could become the fixed redeemer mechanism, as a special case for delisted tokens.
    • Considerations: Burn equivalents.
  • Possibility 2: Disable future swap on the delisted tokens.

References

• [1] https://www.sec.gov/Archives/edgar/data/0001418091/000110465922048128/tm2213229d1_sc13da.htm
• [2] https://www.bloomberg.com/news/articles/2022-04-25/elon-musk-clinches-deal-to-take-twitter-private-for-44-billion
• [3] https://www.nytimes.com/2022/04/25/business/dealbook/elon-musk-twitter-deal.html
• [4] https://www.cnbc.com/select/elon-musk-is-buying-twitter-heres-how-to-buy-twitter-stock-now/

[defichain-bot]

@prasannavl: Thanks for opening an issue, it is currently awaiting triage.

The triage/accepted label can be added by foundation members by writing /triage accepted in a comment.

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