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Lending and V2 Plans

· 2 min read

It's been a few weeks since the White Lotus launch! so far it had good success in showcasing a new token generation event that allows for new primitives to be built on top, and inspired many users and builders!

Forks and new experiments launched, so far they seem to end in the same state (or worst) as the og White Lotus, while adding complexity and risk.

Building

The White Lotus V1 was intentionally kept simple and immutable. Just having a pegged(ish) asset in a token generation event won't create ongoing demand, there needs to be a product supporting it.

Currently, I'm working on designing White Lotus v2. I'll announce a specific timeline for users to migrate and obtain LOTUS v2 Tokens. The process involves depositing LOTUS v1 into a contract, which automatically sells it into the JOE pool, and you'll receive LOTUS v2 tokens upon its launch.

If you miss the swap deadline, you will still be able to sell your V1 LOTUS into the JOE pool and get ETH back, but you won't be able to get v2 tokens unless you participate in the new launch.

The design of v2 is more complex and risky, so it will take some time to develop. It won't be expected to launch within the next 1.5 months.

I'll share more details and updates on v2 as we approach the migration date. v2 will be trust-minimized and launched as initially designed, with no possibility of further upgrades or a DAO involved since the contracts will be immutable.

I might also airdrop the NFT i spoke about, but still thinking about it. no promises here.

Lending

Currently, whenever someone supplies ETH, it gets borrowed right after in the pool. We've hit the protocol limit of 10 ETH.

I've made the decision to shift my focus away from this lending platform because version 2 will introduce a brand new lending system. Since a token migration will be necessary, it would unnecessarily complicate things for existing users who borrow, lend, or get liquidated when it's time to migrate.

As a result, the lending limit will stay at 10 ETH and will work as intended for borrowers and lenders. However, it won't be further developed in its current form.