What You Need to Know: Crucible Migration to Arbitrum
A DAO proposal titled FRC-5 has recently passed. This article explains everything you need to know about with this means for you as a FRM or cFRM holder.
At Ferrum we pride ourselves in receiving feedback from the community and applying it. We’ve taken this ethos one step further by giving the community a true voice and holding the team accountable via the advent of the Ferrum Network DAO.
Recently, we started receiving feedback regarding some of the undesirable components and effects of Crucible. We agreed! A proposal titled FRC-5 was created to resolve those issues. It passed and is now being executed by the team. This article describes everything you need to know about why the proposal was created and what steps you may need or want to take as a holder.
What was FRC-5 and why was it proposed?
FRC-5 aimed to accomplish 4 things:
1. Reduce the round-trip cost of entering and exiting Crucible
2. Encourage more people to take part in presales, thus staking tokens
3. Maintain the incentive to remain staked
4. Add liquidity to FRM/cFRM pairs to encourage volume and incentivize exit via swap vs unwrap
In order to resolve the aforementioned issues, the following steps were proposed to be taken.
Proposed Action(s):
FRC-5 lowers the Crucible fees as follows:
Transfer and Swaps: 0.3%
Mint and Stake: 0%
Unstake: 2%
Unwrap: 4%
The above fees are for Arbitrum cFRM, which is where we plan to support Crucible liquidity going forward. Users must stake their cFRM in the cFRM Arbitrum pool to access GC (TDI) and TDI Presale Benefits.
There will be sufficient liquidity 10MM FRM / ~10 MM cFRM added on Arbitrum to support Price Impact / Slippage with a Fee in the range of 2.0633% for 200K swaps at the point of liquidity being added.
Migration Timeline and Period of No Fee Bridging
We hoped to do this without a migration deadline, but that will inevitably delay accurate aggregator info updates of supply, reserves, CS, and NCS on CMC and other market info aggregators. Additionally, an unlimited timeframe will also hold back the listing of market-based cross-chain swaps through MultiSwap for cFRM, which will need to be set as a bridgeable asset temporarily. This technical debt needs to be for a limited period, so we are enforcing a 30-day migration without fees. Beyond this period, the fees will need to be raised to encourage users to migrate during the migration period.
On BSC to prepare for Migration we will be doing the following:
- Remove cFRM / FRM pair liquidity
- Increase Unwrap Fee to 10+% on BSC, to prevent unwraps on BSC
- Set unstaking fee to 0
- Enable bridging of cFRM from BSC to cFRM Arbitrum for 0 fees
Giving users a path to move cFRM BSC to cFRM Arbitrum without paying any fees during the migration period. (This is a one-way bridge). Users are encouraged to move during the migration period to enjoy no fee unstaking on BSC, and no fee bridge to Arbitrum.
What should I do if I’m a Crucible user on BSC?
If you are someone who has your Crucible staked on BSC you should take immediate action by moving your cFRM from BSC to Arbitrum in order to avoid both Unstaking and Bridging fees. Starting today, Septemper 11th, bridging and unstaking fees will be reduced to 0% for a duration of 30 days. This means that if you decide to move your BSC cFRM to Arbitrum after October 12th, you will be subject to the 2% unstaking fee + standard bridging fees.
About Ferrum Network
Ferrum is Pioneering Interoperability 2.0 — a new era of interconnected blockchains. Powered by a multichain messaging engine known as Quantum Portal, Ferrum Network’s mainnet will bring value, data, and functional interoperability to every chain in the industry.
Utilize Ferrum Network to build and deploy solutions on one network and instantly enable multichain functionality without the burden or technical debt that comes with managing a multichain infrastructure.
