Dear users,

In light of recent events, liquidity has significantly declined across Solana-native AMMs. In order to ensure you are in a safe position, we recommend paying back excess debt. Our updated liquidation UI will shortly show the health of your vault as well.

As of now, market-making has been disabled on http://app.atrix.finance, which has reduced the availability of USDr. However, there is a high amount of USDr now available on http://orca.so.

We are constantly monitoring market conditions. If liquidations are necessary, we will do our best to give our users ample warning.

All funds are safe, and USDr remains significantly overcollateralized. We recommend this out of an abundance of caution and to protect our users.

https://twitter.com/RatioFinance/status/1591151768154607637

We have temporarily reduced caps for all vaults due to continued market volatility. We will reassess on Monday. We appreciate the continued support and understanding ! Please reach out to us on discord or telegram for any questions.

https://twitter.com/ratiofinance/status/1591160327718469632?s=46&t=XL7ZlesIxHTJxgKFDl1exQ

Hey $RATIO fam!

What a whirlwind it has been. 😵‍💫😵‍💫😵‍💫

We hope that everyone is doing well during these trying times! 🙏

Here are some of the latest updates from Ratio Finance
🧵👇

https://twitter.com/RatioFinance/status/1593129226492076032?s=20&t=I-8afiY8-1rzUSCavAv1Nw

Without a doubt, the past week has been the most tumultuous in the history of crypto…

However, for the @Solana DeFi ecosystem, it has been even more distressing. Following the collapse and bankruptcy of FTX, the contagion was felt across all of Solana DeFi.

To explore the novel financial risks to which DeFi platforms must pay attention, Ratio Finance & FYEO together present this analysis of how the FTX insolvency affected Solend protocol.

TL;DR
🧵👇

1/ Historically @FTX_Official + @AlamedaResearch was known to take tokens in which they held a core stake and deploy them to any lending protocol that would allow FTX/Alameda to borrow against their indicated value, thereby leveraging the token asset.

2/ As long as the market value of the tokens thereby leveraged rose, this was a symbiotic relationship: protocols gained massive - if inflated - TVL and fees, and FTX/Alameda gained liquidity for their otherwise illiquid assets.

3/ In the process, many protocols that fell into this trap became overexposed to these assets and Alameda as a counterparty. When the initial outflow of capital from Alameda occurred in Solana DeFi in October 2022, the TVL halved overnight.

4/ Many protocols faced an immediate liquidity crunch, as Alameda was their largest (sometimes only) liquidity provider. Even so, protocols continued to accept FTX/Alameda assets (e.g. soAssets, SRM, FTT), growing the overexposure and over-reliance on FTX.

6/ Although Solend has permissionless liquidation bots enabled, network congestion, low liquidity and oracle issues meant that the underwater position could not be covered through traditional liquidations.

7/ Solend began a campaign where others could pay back the whale’s debt at a premium. Eventually the position was liquidated, netting a >6M USDC hole of bad debt for the Solend Treasury.
They covered this a few days ago here: https://blog.solend.fi/slnd4-use-treasury-to-repay-bad-debt-in-main-pool-d2e8b49ea317

8/ Some takeaways:
✅ Make sure the amount of 'good quality' debt that is outstanding is higher than the 'bad quality' debt
✅ Make LTV/Interest a function of slippage (i.e, if there’s higher slippage, increase interest rates to encourage people to pay back debt)
✅ Do not overexpose yourself to any singular asset, despite what the initial payoff may be
✅ Understand what the credit risks are of each asset that is onboarded on your platform

Learn more here
⬇️⬇️⬇️
https://www.gofyeo.com/post/ftx-impact-on-the-solana-ecosystem

https://twitter.com/RatioFinance/status/1594707557037506561

FYEO & Ratio Finance: Form Web3 "Justice League" Offering "Security as a Service." 🦹🦸‍♀️

-

We are thrilled to collaborate w/ @goFYEO on keeping #DeFi safe & secure from harm. 🤝

Our partnership focuses on reviewing your DeFi and crypto code, and analyzing and detecting financial attack vectors.

Combined, we offer a complete Security as a Service offering. 🔐

Learn more here
⬇️⬇️⬇️
https://gofyeo.com/post/ftx-impact-on-the-solana-ecosystem

Request a Blockchain Security Audit today!
⬇️⬇️⬇️
https://gofyeo.com/security-as-a-service

https://twitter.com/RatioFinance/status/1595069907020156928

Excited for this one w/ the guys from @NovaFinance_ and @HubbleProtocol. 🤝

Tune in later! ⚡️

https://twitter.com/ratiofinance/status/1600807443897864192

We are LIVE 🔥

https://twitter.com/NovaFinance_/status/1600898124046036992?t=Uz11SdBTiSB2aAf3kgdvhg&s=19

Hey there Ratio Fam! 👋

We have a few BIG announcements coming soon. If you've been keeping up with our Medium articles you may have an idea of what's coming 🔥

Share your guesses with us and let us know what you think it is 👀👀👀

(and join our Discord server if you haven't yet! link here)

We are thrilled to announce the integration of our first non-stable LP [SOL-USDC], via @RaydiumProtocol. ⚡️⚡️⚡️

Now users can deposit SOL-USDC LP into our vault, and mint USDr. 🤑🤑🤑

With transparency being at the forefront at Ratio Finance, it is important to note that before any asset is accepted as collateral on the Ratio platform, it undergoes a rigorous credit-check by our risk team, and is subsequently assigned a ‘Ratio Risk Rating’.

Head over to our platform to Deposit and Mint now!
⬇️⬇️⬇️
http://app.ratio.finance

https://twitter.com/RatioFinance/status/1602409238458167297

As a follow-up on our latest announcement, we are now formally introducing liquidations to the Ratio Protocol! 🔥

Please read the following thread and refer to our docs for more details on our liquidation engine!

🧵👇

https://twitter.com/RatioFinance/status/1602416960578502656?s=20&t=Qmr-xl_9nmbhC1cqtdQ2TQ

https://docs.ratio.finance/liquidation-engine

INTRODUCING STABILITY FEES.

Ratio Finance prides itself on giving our users the most capital efficient loans against yield bearing collateral. The introduction of Stability Fees brings with it mechanisms that will not only benefit the Ratio Protocol but also our users. 🤝

Please read our thread and our Medium article detailing how our stability fees will work!

Thread: https://twitter.com/RatioFinance/status/1602758241687052288

Medium article: https://medium.com/ratio-finance/introducing-stability-fees-a582f18f3387

Dear users,

In light of an active exploit on the @RaydiumProtocol DEX, Ratio Finance has paused minting of USDr on all vaults, with immediate effect.

Our team is currently investigating the situation further - updates to follow.

https://twitter.com/RatioFinance/status/1603763377834233859

1) AN UPDATE FROM RATIO FINANCE
Dear Ratio Community,

We know that we have been silent for a while. Unfortunately, a private key compromise of one of our developers allowed an exploiter to drain the collateral of one of our users on Dec 3, 2022: https://solscan.io/account/7A6CzNrzCrNBMSftpRrb5axBwQR7vhJ1H9FyLfMVzkXa#splTransfers. Only one user had their collateral drained. We have been trying to reach out to them to no avail. If your Solana address begins with “5zeFXAmRAmn…”, please dm one of our community managers on Telegram or Discord.

2) WHAT HAPPENED: As this was not a smart-contract attack, we did not detect the lack of collateral until a manual inspection in the wake of the Raydium exploit of December 17, 2022. To be clear, the Ratio Finance exploit has nothing to do with Raydium, smart-contract vulnerabilities, Squads, or any other Solana platform. At the advice of law enforcement (LE), we have waited this long to let our community know in order to give exchanges and LE time to recover funds. This time has been useful and contributed to the freezing of funds.

3) HOW IT HAPPENED: A full breakdown of the exploit can be found here: https://gist.github.com/oeble/56403d5b94709c6ebe47d19fd2b584c0#file-ratio-2022-12-03-hack-md

We thank Olivier of @Hubble and their entire team for assistance in identifying the root cause of the fraudulent withdrawal.

4) WHAT NOW: interest rates and our lending platform were immediately paused upon discovery of the exploit. We have been working continuously with LE and exchanges, which has led to the freezing of stolen assets. WE URGE ALL USERS TO PAY BACK THEIR DEBT AND CLOSE THEIR VAULTS. As only one user was affected, all other users of Ratio Finance will be able to buy USDr and receive their original collateral. The platform is open right now at http://app.ratio.finance/.

For the patience our users have displayed, we have conducted a snapshot before the platform was paused. All users with active positions on Dec 17, 2022 will receive $RATIO. More details to follow in the coming days.

5) Once we detected the root cause of the fraudulent withdrawal, we immediately paused the platform. After thorough auditing, as well as removing the compromised key from our multsig, the platform has been deemed safe to reopen. Minor front-end errors which can be ignored.

6) As of now, USDr is undercollateralized. However, the Ratio Finance smart contract still recognizes 1 USDr as equalling 1 $USD. The fund recovery process may take substantial time and resources. In the meantime, the Ratio Finance team will come to a solution with the affected user of our platform.

7) WHAT HAPPENS NEXT FOR RATIO: We will deprecate the current version of the Ratio Finance platform over time as the fund recovery process continues. A new, open-source version of the Ratio Finance platform will be released, along with a new collateralized debt position.

8) Significant resources and human capital were used to build the Ratio Finance platform. Our team believes, that despite this incident, that our developed technology can serve as a public good for the Solana ecosystem.

9) As such, $RATIO from the treasury as well as the personal stake of the Ratio Finance team will be used to incentivize contribution to the active development of this new platform. More information on this will be released in the coming weeks.

Despite this setback, we do have several exciting features currently being audited and set to be released in the near future. Stay tuned for more news on these features and updates.

10) We thank all partners that helped in identifying the root cause of the issue, as well as the affected user and our broader community for their gracious understanding of the situation. We will rebuild and come back stronger from this.

The platform is now unpaused at http://app.ratio.finance/

https://twitter.com/RatioFinance/status/1621481456777428992

We would like to share our updated roadmap with our community and what this means for our community at large:

In the coming weeks, a new, open-source version of Ratio will be released. Our new CDP will be known as PHNX. Ratio will have new features and much higher decentralization.

Liquidations are currently being audited and will be implemented soon into the new platform. The aim of the liquidation mechanic is to limit the amount of pressure caused by the liquidation events in order to prevent cascading liquidations. A full outline of the logic and implementation can be found here: https://docs.ratio.finance/liquidation-engine

K-Tokens from @kaminofinance will also be introduced as collateral and allows for further composability with one of the top DeFi products on Solana.

Volatile V2 Raydium LP will also be accepted as collateral. We hope that this leads to deeper liquidity across Solana.

Interest rates will continue to function in the new platform. The aim is to introduce an additional version of peg support by adjusting interest rates in real time based on the current price of PHNX.

Perhaps most intriguing for $RATIO holders is that ALL protocol fees from the new protocol will be used to buy back $RATIO every week. $RATIO staking will also be introduced shortly.

We strongly believe these innovations, along with the previous innovations of risk-adjusted collateralization ratios, asset risk ratings, and our insta-swap, will continue to bring continued utility to the Solana ecosystem and beyond.

If there is a feature that you would like to build with us, please do not hesitate to apply for a RATIO grant! The application can be found here: https://docs.ratio.finance/for-developers/grant-program

We will continue to update the community as the new features are released! The team is excited for this new chapter in our history, and to continue pushing DeFi innovation.

https://twitter.com/RatioFinance/status/1622968018488930309

Good news! The Ratio Finance platform at http://app.ratio.finance/ is now fully back online and operational. If you're still experiencing issues, please reach out to us via Telegram or Discord. #DeFi #RatioFinance

https://twitter.com/RatioFinance/status/1623694120798810112

A previous issue with interest rates being incorrectly applied has been resolved. As a fix, users can pay back the amount of USDr they owe, not including interest. As such, when paying back USDr debt, only pay back the amount denoted in "USDR owed" to unlock your full collateral.

If you had previously paid back your debt with USDr interest included, please reach out to the team via discord or telegram. Interest rates will not be re-enabled on the current version of Ratio Finance.

https://twitter.com/RatioFinance/status/1625453182427201536

Exciting news:

$RATIO staking is now live at http://stake.ratio.finance ! We're thrilled to release new features in anticipation of reopening the Ratio Finance platform. A big shoutout to @nosana_ci for granting us code access and making it possible for us to build upon their work!

If you want an in-depth guide on staking and how it works, check out: https://docs.ratio.finance/our-platform/ratio-staking

Happy staking!

https://twitter.com/ratiofinance/status/1644015323006509057

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https://twitter.com/RatioFinance/status/1664718691001311233

Loading 🟩🟩🟩🟩🟩🟩⬛️⬛️ 👀👀
Kamino_Finance

https://twitter.com/RatioFinance/status/1668995542796451844

🧵Dear Ratio Community,

What a year it has been for Solana DeFi! For those wondering what the next steps are for Ratio Finance, we are excited to announce a few significant updates.

We plan on releasing Ratio V2 sometime early next year. We will start with releasing our open-source, previously audited code.

Ratio is ready to be completely decentralized. The roadmap to its decentralization will involve significant involvement from RATIO holders.

We intend to reward active members of our community that participate in our road to decentralization.

Let’s expand on these points:

Ratio V2 will relaunch sometime early next year with its previously audited code, with all of its code being made open source. New features such as an advanced liquidation engine have been refined over 2023, and we look forward to releasing them soon.

The decentralization of the Ratio platform means handing complete control over the operation of the Ratio DAPP to governance. Ratio V2 will be controlled entirely through Ratio governance, which will occur on Realms on Solana.

We are inspired by the relaunch of the Saber DAO, as well as legendary examples of decentralized governance on Solana such as Mango Markets. The transition from centralized leadership to decentralized ownership is one that has to be handled with care.

The distribution of RATIO leaves much to be desired. If we are to have an active platform that is decentralized, we need an active community of governance token holders.

We will be conducting multiple campaigns on our road to decentralization that aim to further distribute RATIO to new users, as well as reward those that have stuck around during the bear and have believed in us.

DeFi is not easy, and we do not intend to rush this process. We have learned many lessons since starting on Solana in 2021, and intend on applying them to make this relaunch as successful as possible. 2024 is the year of the Dragon, and we are coming back 🐉