Dear Revenant Labs Community,
After months of debate between the core team, we have come to the tough conclusion to no longer develop Singularity and Creditum. While we would like to thank the community for sticking with us this entire time, we are also truly sorry that we will not be able to deliver Singularity. We have several reasons as to why we came to this conclusion:
- Risk to devs from US government:
For those who do not know about Rari Capital, this is an innovative lending protocol created by highschoolers in the US. Their protocol has been exploited 3 times with their latest hack totaling $80 million. Rari is now being subpoenaed by the SEC and suspending their Coinbase account.
What does this mean to us? The events that have occurred to Rari Capital conveys to us that the US government is willing to put the blame of Defi exploits on the devs, even if the project is considered a DAO.
Given the nature of Singularity’s novelty and price oracle reliance, we are highly susceptible to an exploit. We, as the developers, are not comfortable taking on this risk given that we are all based in the US. Although we have completed an audit with yAcademy, the risk of a hack/exploit is possible and likely. These legal risks are serious to the team, which is why we have been hesitant to continue in developing Singularity further.
2. The salary proposal is not in the best interests of both the community and the team.
We want to address the recent proposal that was passed here: https://revenant-labs.medium.com/proposal-5-sng-migration-ac22f157b8e1. We are really happy to see that the community is willing to support the team despite these drastic changes to the protocol. This migration plan represents our best efforts to create a deal that benefits both the team and the community. However, with the news of Rari Capital’s subpoena and further reflection by the team, we’re worried that this migration will end up leaving both parties unhappy.
To reiterate on past disclosures, the core team members (Xam_Pham, Entropy, and Crypt0ad) have never received any salaries/monetary compensation and have been working for free, and the first salary payment under the migration plan would be coming up this month for July. But, we are hesitant to accept payment given we no longer desire to continue working on the project.
Using the current fee model, we would need to do weekly volume of ~$5 mil in Volatile-Volatile swaps, ~$12 mil in Volatile-Stable swaps, or over ~$50 mil in Stable-Stable swaps to just cover the annual salary of $600,000 for the team. With the current macroeconomic environment and state of crypto, we are not sure this is possible.
Additionally, we are not willing to launch Singularity until further US regulations become more clear which may not occur until well into 2023. The current runway for Singularity tokens is 1.33 years, which can very easily run out by the time Singularity is able to launch. As a result, the payout of treasury to SNG holders has the possibility to go from $0.05 per SNG token to $0.
The team does not feel comfortable working for a salary if a working product is not launched soon and under a safe regulatory environment.
At this time, the only way we can safely launch Singularity is if we all move out of the US, which we have no plans to do.
In light of everything discussed above the core team has decided to no longer develop both Creditum and Singularity. We will continue to oversee the repayment of all Creditum loans through weekly increases of interest rates, and will be seeking a new team to deploy and continue development on Singularity. If no new dev team is willing to continue the development of Singularity, we will dissolve the treasury by airdropping USDC to users’ wallets. Before we proceed with any of the plans in this document, we would like to consult with the community for any suggestions before we continue.