As we transition to stewarding our new derivative protocol - announced and discussed through the governance forum - the DeFi Foundation will introduce several changes to its liquidity operations on the MetalSwap protocol.

The DeFi Foundation has long supported liquidity on MetalSwap hedging contracts across various EVM chains, including Ethereum Mainnet, Optimism, and Linea. In preparation for supporting the upcoming liquidity needs of the new protocol, the following changes will take effect starting Monday, 24 February 2025.

Ethereum, Linea and Optimism

Users providing liquidity to hedging contracts are encouraged to withdraw their positions from these networks. In line with these changes, the DeFi Foundation will also cease providing liquidity to hedging contracts on Ethereum Mainnet, Linea and Optimism. Consequently, our default frontend will remove graphical access to hedging contracts.

Please note that these smart contracts remain permissionless and can still be accessed through alternative interfaces or non-graphical means. We are also aware that some third parties are exploring potential deployments of hedging contracts on other chains, and further updates may be forthcoming.

We kindly ask all users of our hedging contracts to close any open positions and refrain from opening new ones moving forward.

Liquidity providers are likewise encouraged to remain attentive to upcoming updates and exciting opportunities related to our new protocol.

Lastly, as we evolve into a comprehensive derivative suite rather than a single protocol, our research and development team is conducting in-depth studies on a potential new version of the hedging contracts that could benefit from the recent wave of RWA assets coming onchain.

Bug Bounty Program and Immunefi partnership

In February 2023, MetalSwap launched a bug bounty program in partnership with Immunefi, allocating a budget of $50,000 to enhance the security of its smart contracts. Over the past two years, this initiative has demonstrated the robustness of the protocol, as no critical or high-severity vulnerabilities have been identified. In line with the operations outlined above, and due to the planned decrease in activity of the hedging contracts protocol, MetalSwap will temporarily conclude this program, marking the completion of a crucial phase in ensuring the protocol's security.

- The DeFi Foundation

What is Denaria?

Denaria is the most complete and user-friendly derivatives suite in the DeFi space, designed to serve a diverse range of users and meet the needs of various market participants.