Kagla/Muuu Finance Operations Sunset and Transition Plan

Discussion
1

Proposal

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Title: Kagla/Muuu Finance Operations Sunset and Transition Plan

Date: 16th Oct 2024

Proposed by: Starlay Chan Initiative (SCI)

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Executive summary

  • Kagla/Muuu operations shutdown: The core team has decided to sunset Kagla/Muuu due to resource constraints and lack of product-market fit.
  • Starlay Finance continues: Starlay Finance will remain operational.
  • Next steps:
    • UI for Kagla/Muuu will be shut down by February 2025.
    • Maintenance and rewards (muLAY, muKGL, veMUUU) will cease.
    • Liquidity for muLAY<>LAY pool will be provided by Starlay’s Treasury.
      • Efforts will be made to ensure that the LAY token’s ratio does not fall below 10-20%, maintaining stability in the exchange rate.
    • Smart contracts will remain functional, and the remaining assets will transfer to Starlay’s Treasury.
  • Actions for users:
    • Withdraw assets from Kagla/Muuu pools before the UI is disabled.
    • Convert muLAY to LAY; veLAY voting will still be possible via Starlay’s UI.
  • Timeline:
    • February 2025: UI shutdown and cessation of operations.
    • March 2025: Asset transfer to Starlay’s Treasury, Relevant info migration to Github

Introduction

The core team of Kagla and Muuu has made the difficult decision to sunset operations at Kagla/Muuu. Starlay Finance will continue to operate. This decision was not made lightly. After around three years of sustained operations, the lack of resources and product-market fit within the platform led us to re-evaluate our position, resulting in this step. While it was a tough choice, it was necessary to ensure the best interests of the community.

We understand this may be a challenging time, and we aim to make the transition as smooth as possible. Our team will remain available on Discord to answer questions and provide assistance.

We are incredibly grateful to everyone who believed in us and supported us throughout this journey; it’s been an incredible experience. A heartfelt thank you to everyone involved.

Specification

Discontinuation of operations by the core team

Given this, the next steps are as follows:

  • The core team will shut down the UI of Kagla/Muuu.
  • The core team will stop Kagla/Muuu maintenance and operations, including voting, thus ending muLAY, muKGL, and veMUUU rewards.
  • The team will provide liquidity for the muLAY<>LAY on Kagla pool from the Starlay treasury
    • Efforts will be made to ensure that the LAY token’s ratio does not fall below 10-20%, maintaining exchange rate stability.
  • While smart contracts will remain functional, the assets of Kagla and Muuu will be transferred to Starlay’s Treasury.

Actions for users

  1. Withdraw assets from Kagla/Muuu pools
    • Although smart contracts will remain operational, the UI will be disabled. Therefore, users with assets are advised to withdraw them promptly.
  2. Convert muLAY to LAY
    • Voting with veLAY will still be possible through Starlay’s UI, but muLAY will no longer be usable. If this proposal passes, Starlay’s Treasury will provide liquidity to maintain the LAY<>muLAY pool exchange rate.

Timeline

February 2025

  • The UI will no longer be available.
  • The core team will cease Kagla/Muuu operations.
  • Starlay’s Treasury will provide liquidity for LAY exchanges in the muLAY<>LAY pool on Kagla Finance.

March 2025

  • Smart contracts will remain functional.
    • Relevant information will be migrated to GitHub.
    • Remaining rewards on Kagla and Muuu may be accessible via smart contract but will not be officially supported.
  • Kagla and Muuu’s assets will be transferred to Starlay’s Treasury.

Next Steps

  1. Initiate a detailed discussion within the community to gather feedback on the proposed options.
  2. Consider and develop any new options proposed during the discussion.
  3. Move to the signaling phase.
2

Since more than 10 days have passed since the initial discussion, we’ve now moved this to the proposal phase.