Background
As part of Wing Finance’s ongoing efforts to optimize protocol operations and risk management, we propose closing the Flash Pools on Ethereum and BNB Chain.
The affected Flash Pools are on Ethereum and BNB Chain.
To facilitate an orderly and timely closure, this proposal aims to immediately discontinue new lending and borrowing activities on both networks and complete the settlement of outstanding positions.
Users with outstanding loans are strongly encouraged to repay their debts as soon as possible, while suppliers should withdraw their available assets during the settlement period.
Proposal Details
Step 1: Immediately Disable Supply and Borrow
Upon implementation of this proposal, the Supply and Borrow functions on both Ethereum and BNB Chain Flash Pools will be disabled.
No new assets may be supplied, and no new loans may be initiated through the affected pools.
The protocol will retain the Repay and Withdraw functions during the settlement period, subject to the availability of liquidity and the technical capabilities of the existing contracts. Liquidation mechanisms will remain operational where necessary to manage outstanding positions and protect protocol solvency.
Step 2: Complete Settlement Within One Week
The target is to complete the settlement and closure of both Flash Pools within seven days of implementation.
During this period:
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Borrowers are strongly urged to repay all outstanding loans as soon as possible.
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Suppliers are encouraged to withdraw their available assets promptly.
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Users with outstanding positions should monitor their positions closely and complete the necessary repayment or withdrawal transactions before the settlement deadline.
Users should not wait until the final day to take action. Withdrawals remain subject to available pool liquidity, and borrowers should ensure they have sufficient funds to repay their outstanding debts.
Step 3: Finalize Closure
At the end of the seven-day settlement period, Wing will proceed with the final closure of the Ethereum and BNB Chain Flash Pools, subject to the status of outstanding positions and the technical feasibility of the required operations.
The final closure process will include disabling the relevant Flash Pool services and updating the associated frontends and user communications as appropriate.
If any outstanding positions or technical constraints prevent full settlement within the target period, Wing will communicate the remaining issues and the necessary next steps to affected users.
Rationale
The proposed closure is intended to simplify protocol operations and enable a controlled wind-down of the affected markets.
The key objectives are:
1. Immediate Risk Exposure Reduction
Disabling Supply and Borrow will prevent new lending and borrowing activities, limiting the creation of additional positions during the closure process.
2. Clear and Time-Bound Settlement
A seven-day target provides a clear timeline for users to repay outstanding loans and withdraw available assets, helping facilitate an efficient and orderly transition.
3. Operational Efficiency
Closing the affected pools will allow Wing to focus its resources on other protocol priorities and ongoing operations.
4. Transparent User Communication
A clearly communicated closure plan will give users a reasonable opportunity to manage their positions and understand the actions required before the pools are discontinued.
Implementation Timeline
The proposed timeline is as follows:
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Day 0: Disable Supply and Borrow on Ethereum and BNB Chain Flash Pools.
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Days 1–6: Users repay outstanding loans and withdraw available assets. Wing monitors the remaining positions and settlement progress.
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Day 7: Target completion of settlement and final closure of both Flash Pools, subject to outstanding positions and technical constraints.
The seven-day period begins when the Supply and Borrow functions are disabled.
Community Discussion
We invite the Wing community to review and discuss this proposal to close the Ethereum and BNB Chain Flash Pools.
The objective is to complete the wind-down as efficiently as possible, with a target of settling outstanding positions within one week while maintaining the necessary repayment, withdrawal, and risk-management mechanisms during the transition.
Users with outstanding borrowing positions are strongly encouraged to repay their loans promptly and avoid waiting until the settlement deadline.
Thank you for your continued support of Wing Finance.