Dear WagmiDAO Community,
There is no easy way to put this, but we are ending support for WagmiDAO protocol after a lot of passion, time, effort and money were put into developing our platform, a project that was aiming to become the first reserve-backed decentralized exchange (RDEX) on Harmony ONE Network.
We couldn’t live up to the WAGMI name 😔
After a bot snipped launch, that took the steam out of our initial growth and caused some panic amongst $GMI holders, it gradually became obvious that there was not enough demand on Harmony ONE Network to sustain our business and token model. Coupled with precarious overall market conditions, inflation kicked in, with not enough buy pressure to keep it in balance. $GMI’s price started to drop, in terms causing our stablecoin $FAM to temporarily lose peg, which basically scared off the already low number of existing investors.
Together with our community, in DAO spirit, we came up with several proposals to try and put the project back on the right track. These proposals were subject to Governance voting and implemented accordingly. There were some drastic measures, like reducing emissions by 75% and redirecting a big part of them to $FAM, that in retrospect, did both good and harm, as they did help $FAM to regain peg, but at the same time, made the protocol a whole lot less appealing to new investors, giving out less rewards, hence less motive to invest. In the end, our attempts failed to stop the price of $GMI spiraling down to floor price, where it has remained for a while now.
The bad price action caused FUD around the project on our social media channels and also made it very difficult for us to come up with any real partnerships, as potential partners didn’t want to associate their brands with ours, for obvious reasons.
This vicious circle formed and caused a big part of our team to lose faith in the project and straight up leave. At the end of the day, most of us work for money and being really down on our investments caused a lot of stress and disappointment. We had multiple attempts in trying to get the team back working on the project or even coming up with a new team, but things didn’t work out well in that regard.
We believe that the idea of the project was good, but it launched at a bad time as far as market sentiment goes. This, together with people with a low appetite for risk investments on Harmony ONE Network, prevented the project from picking up.
What’s next and what you should do now
With a Treasury that is constantly shrinking, DAOs that are getting a bad reputation everywhere and without a proper team to keep developing, we believe that the project has entered a slow death cycle.
As a result, we will use the remaining Treasury funds to provide a way for remaining holders to basically redeem their $GMI at floor price.
The special redeem UI will be made available on our platform on Monday, February the 7th 2022.
We hereby suggest that $FAM holders redeem their tokens and $GMI holders either sell their tokens into existing liquidity, or use the special UI and redeem USDC from Treasury in exchange for their $GMI tokens. The special redeem UI will be made available on our platform on Monday, February the 7th 2022. At the same date, most of the initial liquidity (LPs) provided by the team for GMI/USDC will be withdrawn and send to the redemption contract.
LP providers should also remove liquidity. Emissions and so farm/staking rewards will completely stop on Thursday, February the 3rd 2022, at 6PM UTC, in preparation for Treasury wind down.
Users will have 6 months to redeem $FAM/$GMI. After this time period, the platform (website) will be closed entirely.
More information and numbers will come soon, keep following our social networks to stay informed or ask any question.
We sincerely regret this outcome and are extremely grateful for getting to meet such amazing individuals in our Discord community, in our short time together.
Wishing you all the best! 🤝
