An upcoming issue of concern is Sollet sunsetting their support of wrapped ETH and other ERC-20 tokens. This impacts Jet Protocol as it currently supports Sollet-wrapped tokens (both BTC and ETH) as collateral. This also highlights the important lesson in designing for flexibility and decision-making when creating a DAO, always prioritizing the health and safety of the protocol.
JetDAO has already undergone a lot of preparation towards onboarding new collateral types through the governance process. However, there’s no current process established for off-boarding an asset through governance yet. In this case, the amount of time between launching JetGovern and the deadline to redeem Sollet-wrapped assets for their underlying assets is too short.
An asset being sunset in short-order like this could cause a lot of problems. Problems for individuals who own these collateral types, as well as for the Jet Protocol ecosystem as a whole. One problem might be diminished liquidity of these assets closer to the date of sunset.
The Jet Association’s Governance Committee and Jet community will work on developing response criteria for delisting assets in the future. They will also provide an alternative wrapped ETH asset to Sollet wrapped ETH in the short term.
Given the time-sensitivity, and importance of the Sollet news, Sollet-wrapped ETH will be removed as a collateral type from app.jetprotocol.io on Wednesday April 20th, 2022. After this date you will no longer be able to deposit Sollet wrapped ETH into Jet Protocol.
During the period between now and April 20th, we ask that all users of Jet Protocol immediately unwind any loans they’ve taken against their ETH, in addition to withdrawing any deposited ETH.
We anticipate having a community vote on other wrapped ETH assets as soon as possible through governance. Due to the time sensitivity and degree of importance of off-boarding Sollet wrapped ETH there will be a time gap between Jet Protocol supporting any other wrapped ETH collateral types in the meantime.
Please read more about Sollet’s sunsetting of their wrapped ETH asset and how to redeem for the underlying assets here:
https://projectserum.medium.com/migrating-from-sollet-c5979545c40e
If you have any questions about how to manage this transaction please message support@jetprotocol.io and for any questions related to Sollet-wrapped asset issues, refer to Serum’s official support channels:
Serum Discord: https://discord.com/invite/zxPsXcB
Serum Telegram: https://t.me/ProjectSerum
