V2 is Live!
If you already know what’s going on, and you’ve been keeping up on the Discord/newsletters: MIGRATION IS LIVE. Migration instructions here. Migration post here.
If you haven’t been keeping up let me summarize the story real quick: Empty Set Dollar (now just Empty Set) launched V1 back in Fall of 2020. It was an algorithmic stable coin based on an expansion and contraction model. The protocol expanded incredibly fast, and contracted incredibly fast as well. While there were many attempts to save the protocol in its form, it needed to be completely revamped.
If you have no idea what ESD V2 is please refer to a previous newsletter, and this video explainer which explains what (even though it says V1.5). You can (should) also read the Medium article written by the ESS, the article from Lewis Freiberg introducing the two new tokens, and the write-up done by Complement Capital.
The last six months have been spent in redoing almost everything. Partnerships have been secured with DeFi Pulse, and Equilibria, the code has been audited by Open Zeppelin, all the EIP’s have passed, everything is (finally) ready.
Quick Refresher on V2
V2 uses a two token system, where the first token acts as the stable instrument (DSU) and the second acts as the seignorage token (ESS).
The stable instrument (DSU) is backed 100% by USDC as collateral to start; this could change later to include other crypto, and/or collateral level could change.
Arbitrageurs will help regulate the price of DSU; made possible because you can always mint 1 DSU for 1 USDC.
The DAO will perform market operations with the USDC and that yield will be used to stabilize DSU, and then to buy and burn ESS, creating buy-pressure on ESS.
Deeper breakdown of V2 and an explanation of what happened to V1 found here.
What do I do with my ESD?! How do I migrate?
Bonded to the DAO: Connect wallet, migrate ESDS to ESS.
Unbonded: Connect wallet, migrate your ESD to ESS.
Liquidity Providing: Trade in your LP token for ESD and then migrate your ESD to ESS.
ESD will be migrated at a rate of 3.2 ESS for every 1 ESD
Normally, I’d make a tutorial, but considering how easy the migration process is, I don’t think one will be necessary. Migration instructions here.
Rabbit Hole
ESD SN2 Youtube Channel - Community Calls
Personal Note
Some of you may remember that I left ESD to pursue other opportunities, but I am thrilled to be BACK as part of SN2. I said before that I truly believe in what the team is doing with V2 and I couldn’t stand on the sidelines.