The DeFi ecosystem is experiencing an ongoing depegging event with UST. At this point, it is difficult to judge whether this one - like the several previous ones over the years - is only a temporary event or if it will do permanent damage to the value of UST.
Why is this important for us? As a reminder, Stablegains is a service that helps individuals earn yield using DeFi, with the only DeFi tool currently supported being Anchor Protocol's deposit side. Anchor uses UST as the asset that is deposited and borrowed.
By depositing with Stablegains, per our terms, our users are instructing us to convert their USD/USDC deposits into UST and place that into Anchor Protocol. This means that many of our users' funds now are being affected by UST's depegging.
This is a risk that we have always highlighted - in our terms and our learning center - and one that our users have chosen to take on.
In this very moment, UST's deviation from the peg means we are unable to process new withdrawals requests using our usual methods (ACH/wire/USDC) at a 1:1 dollar value.
What this means for withdrawals:
1. We will process all withdrawals requested up to the time of this announcement (8:55pm PST on May 9th 2022) at a 1:1 value - processing these might take up to 7 days.
2. From now, as we are unable to continue converting stablecoins at 1:1 value, new withdrawal requests using standard methods (ACH, wire, USDC) will not be accepted (per section 15 of the terms) until the peg stabilizes.
3a. We want all of our users to continue having access to their funds to the greatest possible extent; within the next 8 hours - most likely much sooner, we will be deploying a way for everyone to withdraw UST over the Terra blockchain directly...
3b. ...with a significantly lower processing time than the usual 24 hours. While uncertainty continues, hold periods on withdrawing ACH deposits initiated until 8:55pm PST today will be waived.
Whenever volatility ends and UST returns to the peg, we expect to very soon restore all systems back to normal.
Update: we have now deployed the UST withdrawal feature in our web dashboard: app.stablegains.com
If you’re concerned about the ongoing volatility, this gives you the option to control UST and convert it yourself into another asset on a digital asset exchange like Kraken or KuCoin.
You can read how to withdraw UST directly in our learning center. stablegains.zendesk.com/hc/en-us/artic…
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