Proposal: Phase-Out Plan to Delist WING from Flash Pools on Ethereum and BNB Chain

Discussion
1

Proposal Overview

To ensure the stability and reliability of the Wing Finance platform while minimizing user impact, we propose a two-week phased removal plan for WING assets in the Flash Pools on Ethereum and BNB Chain.

This plan gradually reduces WING’s risk parameters and disables its supply and borrow functionalities in a controlled manner.

Adjustments to WING Parameters in Flash Pools

Phase 1 (Week 1) – Partial Adjustment

  1. Reduce the Collateral Factor of WING by 50% (from its current value)

  2. Increase the Reserve Factor to 100%

Phase 2 (Week 2) – Full Deactivation

  1. **Set the Collateral Factor of WING to 0%
    **

  2. **Keep the Reserve Factor at 100%
    **

  3. Disable Supply and Borrow functions for WING on both Ethereum and BNB Chain Flash Pools

Reasoning

The liquidity of WING in the Ethereum and BNB Chain Flash Pools has declined significantly, resulting in:

  • Reduced market depth and increased volatility

  • Higher risks of inaccurate collateral valuation

  • Difficulty maintaining stable lending and borrowing operations

To safeguard user assets and ensure the protocol’s overall stability, WING should be phased out from the Flash Pools in a gradual manner.
This staged approach allows users adequate time to withdraw or adjust their positions before the asset is fully disabled.

2

The plan does a great job controlling risk step by step instead of making sudden moves.

3

It’s clear the team cares about keeping the platform safe and stable.

4

Some users may rush to withdraw early, worsening the liquidity issue before the full phase-out.

5

The plan doesn’t include compensation, migration options, or incentives for affected users.

6

Handling both Ethereum and BNB Chain in the same way avoids confusion.

7

This process can serve as a useful reference for handling similar cases in the future.

8

The proposal is clear and easy to follow; everyone can understand what’s happening and when.

9

Gradual changes mean users won’t be caught off guard.

10

Removing a low-liquidity asset helps prevent wild price swings and valuation issues.

11

Lowering the Collateral Factor first, then turning off borrowing, makes sense technically.