AIP #65: Discontinuation of Fantom Markets and Ending Abracadabra Support on Fantom Chain

Governance Proposals Voted Proposals
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AIP #65: Discontinuation of Fantom Markets and Ending Abracadabra Support on Fantom Chain

TL;DR: This proposal seeks to discontinue all support for the Fantom Network within the Abracadabra ecosystem. This includes Beaming, Cauldrons, mSPELL, and any other Abracadabra-related products currently live on Fantom .

Additionally, as part of this process, all outstanding Cauldron positions on Fantom—currently holding approximately $300,000 in user collateral—will face automatic liquidation in 14 days if they are not closed beforehand .

Summary

With the transition from Fantom to Sonic, Abracadabra must adapt its infrastructure to align with the evolving ecosystem. Given this shift, maintaining support for Fantom’s existing chain is no longer sustainable or aligned with our long-term strategy.

This proposal recommends the full discontinuation of all Abracadabra-related deployments on Fantom to optimize resources, reduce operational overhead, and prioritize ecosystems better suited to our growth strategy .

As part of this discontinuation, all active Cauldron positions must be closed by March 4th . Any remaining positions will be immediately liquidated , and all collateral will be forcibly liquidated at the end of this period, regardless of the amount of minted MIM .

The current Cauldrons on Fantom have been deprecated for over two years and include:

• FTM/MIM

• xBOO

• yvWFTM

• WFTM

99% of the collateral resides in the WFTM and yvWFTM Cauldrons , with approximately 110,000 MIM minted against this collateral . While this represents an infinitesimal percentage of the total MIM minted across all chains , it is still necessary to address this migration to avoid disruptions in Abracadabra services on actively maintained chains .

Motivation

The migration from Fantom to Sonic marks a significant evolution in the Fantom ecosystem. As Fantom shifts its focus, continuing to maintain legacy support on the original chain is inefficient and does not align with Abracadabra’s forward-looking approach.

Key reasons for discontinuation include:

• Sonic Migration: Fantom’s core development is moving towards Sonic, rendering the existing network increasingly obsolete.

• Reduced Liquidity and User Activity : With key players migrating to Sonic, Abracadabra’s products on Fantom face diminishing activity, reducing their efficiency and relevance .

• Operational Efficiency : Maintaining support for Fantom’s existing chain diverts resources that could be better allocated to ecosystems with stronger long-term potential .

• Security and Maintenance Risks : As focus shifts to Sonic, security updates and developer support for the Fantom chain may decrease, increasing risks for users and protocols still deployed there .

By discontinuing Fantom support, Abracadabra can focus on more robust and strategically aligned ecosystems, ensuring the best possible experience for users and developers.

Implementation Plan

If approved, the deprecation process will occur in phases:

  1. Mandatory Closure of Cauldron Positions

• Users will have until March 4th to close their positions and withdraw collateral .

• We strongly urge all users to withdraw their collateral before this deadline.

  1. Liquidation of Remaining Positions

• Any unclosed positions will be automatically liquidated after March 4th .

  1. Wind Down of Other Products

• Beaming, mSPELL, and other affected products will be discontinued .

• Users will have until March 11th to transition their MIM back to ETH. Following this deadline all MIM on Fantom wont be redeemable on ETH anymore.

  1. Official Decommissioning

• All Abracadabra UI infrastructure on Fantom will be fully shut down .

• Clear communication and transparency will be provided throughout the process.

Timelines and additional details will be communicated immediately upon proposal approval.

Voting Process

This proposal will remain as an AIP for 72 hours, after which it will be moved to a vote as AIP #65.

• Voting will last for 4 days .

• Voting is already scheduled and can be found here .

If the proposal is approved , Abracadabra will fully discontinue operations on Fantom , aligning with ecosystems that better support our growth and user experience .

Edit: Following community feedbacks, I am adding some clarification here as well as proposing a prolonged deadline fro closing MIM beaming:

  1. SPELL on Fantom has been hacked during the Multichain exploit. All SPELL on fantom are no longer redeemable back to ETH, and the way this SPELL will be recovered will be subject to another proposal. If you are holding SPELL on fantom, there is no action for you to take, this proposal doesn’t change anything on that side.
  1. mSPELL and sSPELL will no longer have any governance power on Fantom if this proposal was to pass, and MIM distribution on Fantom for mSPELL will be halted.
  1. The only action that needs to be taken are: closing all of your Fantom position and withdrawing collateral to avoid Certain Liquidation before the 4th of March, beam back all your MIMs to another chain before the 11th of April.

Important Deadlines:

• Liquidation Deadline: March 4th (All unclosed Cauldron positions will be liquidated).

• MIM Beaming Interruption Deadline : April 11th .

Users are strongly encouraged to close their positions before the liquidation deadline to avoid forced liquidations.

The proposal has passed with a 99.1% approval rate.

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Will there be any way for users to recover anything from Fantom staked SPELL (SSPELL)? If not why not?

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Implementation Plan - part 3: Users will have until March 11th to transition their assets.

there is no way to currently transition mSPELL as the proposer would clearly understand. so can this be reworded to clarify this situation?

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I assume that even if this vote passes and support for Fantom is dropped (even ftmscan is being deprecated on the 20th yeesh), that does not prevent the DAO from later doing some kind of rescue/bailout of SPELL/mSPELL/sSPELL.

Personally, I would prefer some kind of unannounced snapshot of holdings and then a path to migrate to Sonic for those holders. This would prevent ppl from arbing any kind of rescue/bailout.

Perhaps even having the DAO buy up the underpriced SPELL to be used for sSPELL distributions if there was a way to bridge that to ethereum.

It looks like there is currently about 1.17B SPELL on Fantom (including sSPELL).

Fully in favor of shutting down operations on Fantom before we get stuck on an unsupported chain. We can figure out the rest later, but I would personally hate to see SPELL stranded.

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Important proposal to keep everything tidy within the protocol.

I have a question/sugestion about the following item:

I believe this timeline is a bit too tight. Even considering that these users does not care/are not around any more, we should give them more time.

We also should start to communicate this ASAP :wink:

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While I think we might want to consider some remediations for those impacted, I think any such proposal shouldn’t be specific to Fantom. This proposal solely deals with the discontinuation of products on Fantom. It would protect the protocol against any potential future issues with Fantom. I agree the timeline is pretty tight.

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This proposal seeks to discontinue all support for the Fantom Network within the Abracadabra ecosystem. This includes Beaming, Cauldrons, mSPELL, and any other Abracadabra-related products currently live on Fantom .

So @mDreamy4 are you saying that “discontinuing all support for Fantom network within the Abracadabra ecosystem” does NOT include discontinuing all support for SSPELL on Fantom network within the Abracadabra ecosystem?

I’m sure you can see where my concerns about Fantom SSPELL were drawn from when reading the original proposal. Maybe it could at least be cleared up in the (final) proposal text?

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IMO it’s kinda nitpicking, but I’ll bite. So sSPELL on Fantom was always just a bridged token. That bridge was shut down which in turn left sSPELL on Fantom disjointed from sSPELL (the native version) on Mainnet. This proposal does not change anything about that issue.

However, mSPELL still receives rewards through beamed MIM. When/if this proposal is executed, MIM beaming would be turned off, which would make it impossible to distribute anything to mSPELL stakers.

Again, we can discuss remediations, but IMO that needs to include other chains, notably Avalanche.

I think however it would be good to clarify whether sSPELL and mSPELL on Fantom would still have governance rights. In the proposal as is, I don’t think that’s clear. I think it’s the case given the words you quoted.

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I agree with your take that any remediation should affect all chains. As the proposal is currently written, it seems Abra is permanently leaving behind the Fantom network, including everything on it. I think it’s important to clarify that while this is the case for all MIM and Cauldron-related assets and operations, it may not be the case for SPELL.

Of course, as a DAO we could vote at any time to change anything about the protocol so perhaps the author didn’t think that clarification was necessary.

Governance rights is a good point as well.

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I have added a clarification, this proposal doesn’t change anything about SPELL and sSPELL recoveries on Fantom. Core contributors are working on a solution, and a proposal will be soon posted to address this.

The two important deadlines, assuming this proposal was to pass, are:

  1. 4th of March: if you have a position open on Fantom remove all your collateral and return your minted MIM or your position will face immediate liquidation.

  2. 11th of April: if you are holding MIM on Fantom, beam it back to another one of the supported chains by the 11th, or your MIM will no longer be redeemable with the rest of the ecosystem.

Note that 2) has been prolonged 30 days more to allow for more time for people to do it.

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thank you for the feedback, I edited the proposal to make it clearer, let me know if I can improve that further

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I am aligned also, I know core contributors are already working on a proposal to process recoveries, it should be treated separately from this.

I have some SPELL on fantom, I just unstaked them from mSPELL and waiting for that also.

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Yep understandable, the problem is that we are unsure about how Fantom support will look like. Oracle providers are already discontinuing support, so we have to move fast.

Thos cauldrons have been deprecated for ages, so I assume most of this is dead TVL anyway!

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Point taken, I proposed to increase the deadline for beaming to the 11th of April (30 days more)

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Appreciate the clarification on Fantom SPELL, thanks

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Well this proposal lands as really sneaky. People have been asking over and over in Discord what is the status with Fantom, MSPELL, and the Sonic upgrade. We’ve been told that we could stake Fantom Spell for MSPELL and earn yield, and that a proposal would be worked out at some point in the future. From the replies here, it’s obvious that folks are mostly concerned with the depegged SPELL on Fantom and want a solution to that, as we have been asking in the Discord. This proposal is basically: we’re going to “shut it down” and we’ll figure out some compensation for Fantom SPELL holders afterwards. Why don’t you figure out a solution for Fantom SPELL holders before shutting it down, or within the same proposal. I’m sure if the solution is reasonable, then there won’t be a problem shutting it down. So it seems sneaky, and a set up for a very unfair solution for Fantom SPELL holders. Talk to Andre and other Fantom folks who got burned by Multichain and come up with a good / fair / equitable solution for Fantom Spell users and provide a comprehensive proposal.

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again, this does not relate t the SPELL situation. This only focuses on the deprecated markets and MIM beaming.

Further proposals will be subject to DAO voting to handle the Fantom SPELL.