Statement about stETH:stZEN Issues

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Dear Horizen community,

On May 2nd, our partner StakeHound informed us of an unfortunate event involving one of their custody providers that could affect stZEN liquidity providers in stZEN:stETH liquidity pool. 38,178 of StakeHound’s staked Ethereum may have been rendered inaccessible to the StakeHound team.
Read StakeHound’s statement for details.

Potential Effects on the Horizen Community

Although this issue is limited to stETH, this may still affect stZEN holders who provide liquidity to the stZEN:stETH pool. stZEN will not be available to swap with stETH until functionality for stETH is fully unlocked by StakeHound. StakeHound performed a smart contract upgrade that allows the removal of liquidity from stTokens:stETH pools to prevent stETH from being traded on existing liquidity pools.  StakeHound has partially unlocked stETH, stETH:stZEN pools may wish to withdraw at this time. 

However, StakeHound states that they will continue to purchase stTokens and distribute staking rewards based on availability.

For more information regarding this event, please read the StakeHound announcement. 

Next Steps

We recommend that stZEN:stETH liquidity providers remove their liquidity from these pools at this time. stZEN:ETH pair is available.

The Horizen team is actively working with StakeHound to minimize the impact on stZEN and regain the normal usage of stZEN for our community.

Please follow StakeHound on Twitter for the latest updates regarding this issue. 

FAQ

Will I lose my stZEN?

No, all of your stZEN is safe and stZEN is still available for swapping. This issue only applies to stETH. 

Can I withdraw my stZEN?

Yes, stZEN withdrawals are still available.

Will I receive my stZEN staking rewards?

Yes. Staking reward distributions have been put on hold since May 2nd, however, StakeHound will resume reward distributions soon. stZEN holders should expect all delayed rewards and future rewards to be distributed as normal.

Can I still use stZEN?

Yes. You can use stZEN as normal, such as adding to ETH pools, starting a new pool, swapping, etc. but not with stETH at this time. 

I am part of an stZEN:stETH pool, what do I do?

We recommend that you remove your stZEN from the stETH liquidity pool at this time.

Can I still get stZEN?

Yes, stZEN is available through Sushiswap.io, StakeHound, MetaMask, Totle, and 1inch. 

The post Statement about stETH:stZEN Issues appeared first on Horizen.

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