By now, most of our community knows about the recent exploit that we suffered on May 26th that allowed someone to use one of our NFTs to mint $LIBRE tokens on an infinite loop. This occurred on Binance Smart Chain and the exploiter was able to drain almost all of the liquidity on Pancakeswap.
Avalance and Polygon chains were less impacted, however, because there was a large number of $LIBRE tokens in the Multiswap router, users were able to use the cross-chain bridge to take advantage of the arbitrage opportunity and sell on Trader Joe. Polygon was not impacted by arbitrage because there was no liquidity in the Multiswap Router for Polygon.
For more info on the exploit itself and the immediate aftermath, please catch up on the articles linked below:
Post Mortem- https://libredefi.medium.com/libre-post-mortem-announcement-b832b7aa0f2d?source=friends_link&sk=158f1e1b6c8dd62e95bb2f346351ec0c
Airdrop Forms- https://libredefi.medium.com/important-updated-regarding-exploit-on-may-26th-be7f8d887841?source=friends_link&sk=233ce56cf27946671b94ad4072cdcd44
Now for the most important details, moving forward and bouncing back.
We’ve spent the past 12 days working closely with advisors, investors, industry leaders, team members, and community members to brainstorm the best way forward for Libre DeFi and our community as a whole. There have been tough decisions that we have had to make, and we are still working on the logistics of a few, but we feel that the following steps will provide us with the best opportunity moving forward.
1. We will be launching a new token contract for the project. This is the first and most necessary step. Pre-exploit users will be airdropped the new token. We have been asking users to fill out forms for the chains they held $LIBRE on, those forms can be found in the medium articles posted above.
2. We will no longer be a multichain project. Looking back, we feel we started with too many chains too fast, launching our token and platform on three chains simultaneously. Moving forward we have decided to launch exclusively on Ethereum. There are many reasons why we have chosen Ethereum as the most logical blockchain to work on. We understand that fees on Ethereum have always been a point of contention, however, this is where the bulk of the innovation is happening in the blockchain space. Ethereum is king in terms of Total Value Locked, daily volume, and active users, we feel in order to reach the most eyes on the project, Ethereum is where we need to be. In addition, in terms of overall network security and stability, Ethereum takes the cake.
3. We will be doing a token re-denomination. The total supply will be reduced from 100million to 10million. What this means is that all users will receive 1/10th of their original tokens. However, we will be launching with a price of $0.10 as opposed to the pre-exploit price of $0.01. This means that the USD value of your tokens and the project market cap at launch will be the same as they were just before the exploit occurred.
4. We will be doing a rebrand for the project. There will be a new name, logo, branding, etc. We have internally decided on the new name of the project and will release news on this soon, along with rebranding our social media accounts.
5. We will no longer have active farming pools as the plan was always for farming to end. However, a portion of tokens still remains from the original amount dedicated to farming rewards. So, on the day of the relaunch, we will still have a single-sided staking pool available for users. You will be able to deposit your new token into the staking pools to earn rewards. APYs will be sustainable and modest, and rewards will have lockup periods on payouts.
In terms of a set launch date, we are aiming for the new token to be trading on Uniswap by the end of this month, however, no firm date has been set, we ask for your patience while we work on getting everything ready for the relaunch.
Collectively we feel that the above steps are a good starting point for the project and the community moving forward. We are also working on some new product offerings that will increase the utility and value of the new token as well as the platform itself. More details will be shared in relation to this at a later date.
Again, we thank you all for your patience during this time. Onwards and upwards!