The Current State of the USDC Yield Pool Funds and AlgoVest Ecosystem

You’ve all supported us for about 2 years now and we deem it important to update you of challenges facing the ecosystem and proposed solution.

We want to assure you that we’re here and will always be here to achieve our objectives with the AlgoVest project. Therefore, we’ll appreciate your continuous support, even if, it may not be convenient.

Loss of Funds

Following the war in Ukraine, we experienced a series of major losses in our trading the EURUSD. The risk mitigation functions built into the system took losses using stop-loss levels. And we were confident of recovering the losses but it got worse every other week, especially during the first and second weeks of July 2022. The issue is that our previously stable risk level became our biggest enemy as economy changed across Europe and the Euro crashed in different turns of extreme volatility.

Moreover, we had to pause and restart the modular algorithm intermittently on different occasions. We took some unwise decisions that we regret and fully accept responsibility to correct going forward. Because we wanted to recover losses faster, our approach was too aggressive on restarting the Algo in the current market conditions. Overall, the EURUSD parity event made us lose 85% of all funds and it will take some time before funds are restored.

Road to Recovery of Funds

First, the algorithm needed an update for the current market condition. This is what we’ve been working on with our developers, even as we’re really disappointed at the unexpected losses. We’ve now deployed a tweak to the trading system that reduces risk up to 5x with far less maximum draw-down of 15% and trades using a safe time-frame under extreme market conditions as experienced in EURUSD this month.

There are about $400,000 of funds in hedged positions and will be recovered to start growing back the funds in safe and steady mode. We reached out to some investors and clubs to secure new funding. This is what delayed communicating to the community on the way forward. But all efforts to get funding has been unsuccessful at the time of writing. We believe the more additional funds available, the faster we can recover the hedged position and start restoring all deposits with interests. Anyone in the community who is aware of funding opportunities should kindly contact us to discuss further.

The smart contract for the yield pool recognises your USDC deposits and we are determined to keep our passive income (interests) obligations to all investors. The process to recover funds will take between 6–12 months. During this time, it’s important we rollover the lockup period on any matured deposit for another 24 weeks (168 days). We will distribute 35% APR interests to you every 4 weeks after reaching the original 168 days and directly to the address holding the unique NFT ID for the USDC deposit as you will be unable to use the claim function on the UI during the lockup period rollover. Those whose contracts aren’t matured can continue to claim their accrued interests the normal way using the dashboard when we deposit USDC to the pool.

Conclusion

Due to the current market conditions, we have stopped new deposits into the 60% on USDC yield pool. And New USDC pools have been created as follows: 30% APR for 24 weeks and 35% APR for 48 weeks. Our devs are integrating these pools and the calculations on the dashboard.

We’re sorry for any inconveniences this may cause you. Please cooperate with us on the road to recovery for the benefit of everyone. We’re committed to bringing this ecosystem back to winning ways to make it shine in DeFi.

Thank you for your support and cooperation. We appreciate your patience.

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