Mainnet Launch Update

Dear Bonzo Community,

We want to provide the community with a transparent update on the Bonzo Finance mainnet launch, which was originally scheduled for Monday, August 19th.

Due to some unforeseen circumstances, we’ve had to adjust our timeline. We are now aiming for a launch before the end of August.

Read on for a detailed overview of our recent activities, the challenges we've encountered, and our plan moving forward.

Pre-Launch Activities

Asset Risk Methodology Framework

We’ve finalized our risk methodology, adapted from Aave for the Hedera DeFi ecosystem. Comprehensive risk scores have been developed for supported assets, considering several factors such as:

• Total DEX liquidity

• Trading volume

• Number of holders

• Market cap

• Average normalized volatility (1, 3, and 6 months)

These risk scores have been translated into protocol risk parameters for safe lending and borrowing, including LTV ratios, liquidation thresholds, reserve factors, and borrowing rates. We will make this documentation available for everyone to review by early next week.

Smart Contract Deployment

We’ve successfully implemented risk parameters into our testnet contracts, deployed the tested contracts to the Hedera mainnet, and completed comprehensive testing on the testnet.

Points System

Development on the points system is complete and is currently undergoing private testing.

Mainnet Testing

The Bonzo Finance contracts have been successfully deployed on the Hedera mainnet, though they’re not yet live on the UI/UX. We’ve conducted extensive testing of all protocol functionalities on mainnet to help ensure everything runs smoothly upon launch.

Challenge Encountered

On Thursday, August 15th, Supra informed us that they had paused support for their push price feeds.

This decision was driven by two key factors:

Costs: Supra faced rising costs associated with centralized infrastructure providers offering JSON-RPC services.

Functionality Issues: There were ongoing functionality and configuration challenges with these providers.

Why Supra Matters

Supra is currently the only oracle provider on Hedera offering price feeds for HTS assets. Without these feeds, relying on centralized price feeds from a single API or DEX could introduce significant vulnerabilities to our system.

Remediation Efforts

Collaborative Discussions

We are actively working with the teams at Hashgraph, The HBAR Foundation, Supra, and Quicknode, exploring various options to reinstate Supra’s push feeds on the Hedera mainnet.

Potential Solutions

We’re considering updated configurations from centralized infrastructure providers and exploring the possibility of a grant from The HBAR Foundation to support Supra’s operations.

Ongoing Communication

We’re committed to providing frequent updates as these discussions progress.

Revised Launch Timeline

Based on the current trajectory and progress of our remediation efforts, our goal is to have Bonzo Finance live on mainnet before the end of August.

We appreciate your patience and understanding as we work diligently to ensure a secure and robust launch of Bonzo Finance. The Bonzo Finance Labs team remains committed to delivering a high-quality, safe lending and borrowing experience on the Hedera network.