This proposal aims to remove the WMT token as both collateral and a debt token within the Liqwid protocol as a result of WMT’s upcoming migration to WMTx.
Following a successful vote, users will only have the option to close all of their WMT positions (with WMT token as collateral or as debt).
Reasoning for removing WMT token as collateral from all Liqwid markets:
The WMT token is currently migrating to another token with the ticker WMTx as part of World Mobile Token’s expansion to the EVM ecosystem, as is explained here on their forum.
As a result of this token migration the price of WMT is expected to be impacted. This is especially the case since BingX, HTX, MEXC and KuCoin, some of the largest WMT markets are delisting this token on September 27th, 2024, according to this Discord announcement.
This also comes with critical risks to the Liqwid oracle system. For these reasons we propose a full delisting of WMT before the migration to WMTx is completed.
Wind-down steps for WMT as collateral, implemented after a successful vote
After this vote, the Liqwid Core Team will:
- Modify the front-end to prevent users from:
- Adding more WMT as collateral.
- Increasing the debt of existing WMT-backed loans
- Opening new WMT-backed loans
- Develop and communicate clear information to users about the status of WMT following the successful on-chain vote on Discord and Twitter.
- Change the parameters to trigger the liquidation of all loans backed by WMT collateral positions.
Do you support this proposal to delist WMT from the Liqwid protocol?
- Yes, I support this temperature check.
- No, I do not support this temperature check.