Important: Flowty Loan Update
Important: Flowty Loan Update
How the recent USDC on Flow announcement impacts Flowty loans
As you may have seen, on Monday (August 5) the Flow Foundation published a blog post detailing that support for the USDC token ("FiatToken" contract) will be paused as part of the Crescendo update.
In other words, starting on September 3 (additional details below and in the blog post), USDC will no longer be usable in any capacity on Flow.
Flowty’s loan services WILL be interrupted. We have worked hard to ensure that all users and assets are safe and will be here to help and answer questions throughout the process. We believe the community will be very happy with the plan we formulated alongside the Flow Foundation - keep reading!
Flowty’s CEO put out a Twitter thread summarizing the impact and the exciting resolution if you prefer a shorter format.
What is happening to USDC on Flow?
Crescendo is scheduled for September 4, 2024
On September 3, 2024, the USDC contract (“FiatToken”) will be paused and will no longer work on Flow
From that point forward, it will not be possible to send USDC from one wallet to another wallet or contract on Flow
Please pay attention to the Flow team’s guidance on what to do with your USDC to exchange it for the new stablecoin on Flow
What does that mean for Flowty and you?
There are three primary impacts:
Active loans with due dates on or after September 3, 2024 (UTC time zone)
Existing loan listings
New loan listings
Active loans with due dates on or after September 3, 2024 (UTC time zone)
As soon as the USDC contract is paused, it will no longer be possible to repay loans that were originally funded in USDC – no need to panic, we have very good news…
First and foremost, our number one priority is always user safety and comfort in using Flowty’s services
The Flow Foundation has been incredibly generous and helpful as we navigate this challenging situation for Flowty and the broader ecosystem
The conclusion we reached is that the Flow Foundation and Flowty have agreed to REPAY ALL LOANS MATURING ON SEPTEMBER 3, 2024 (UTC time zone) or later on behalf of borrowers
For the avoidance of doubt, if you have an active loan with a maturity date on or after September 3, 2024, your loan will be repaid for you and you will receive your collateral (NFT) back to your wallet as if you repaid the loan
The best place to check the maturity date of your loan (as a borrower) is the Loans + Rentals tab on your Flowty Profile (must sign in to view – please verify with your own records that the dates are accurate)
If you would like to confirm whether your loan qualifies to be repaid, please reach out to us at any time
Please note that all loans with a maturity date of September 2, 2024 or earlier (UTC time zone) will remain the responsibility of the user to repay
Existing Loan Listings
To ensure that there are no new funded loans with maturities beyond the USDC pause date, all existing loan listings have been removed from Flowty’s site
We know this is a pain for those of you who had listings up and we apologize for the inconvenience
Please see the next section for details on new loan listing parameters
New Loan Listings
Since USDC is being paused, we can no longer permit long-dated USDC loans to be funded
We also know that many users rely on USDC loans for a variety of needs and did not want to remove the option with no warning
In an effort to offer a safe middle ground, starting now, the longest duration on a USDC loan will be 14 days
On August 16, we will remove the ability to create new USDC loan listings and clear all loan listings from Flowty’s site
All loan listings made under the above parameters will mature BEFORE USDC is paused
Other Impacts
IMPORTANT – all loans must be repaid in the exact same token that was used when the listing was made and the original loan was funded
You will not be able to repay a USDC loan with the new Wrapped USDC token
Existing loans in FLOW token will not be repaid since there will be no impact on the token’s transferability
What’s Next on Flowty?
A new version of USDC (Wrapped USDC) is coming soon and we will add support as soon as we can
We will make an announcement as soon as the new token has been added to Flowty
We will be back to business as usual as soon as we have been able to add support for the new token
Summary
We know this is disruptive and frustrating. Unfortunately, this was a Circle decision and completely out of our control. We feel your pain and did our best to outline a plan that works for everyone and to advocate for our community to be lifted up rather than negatively impacted by the change. We expect some of you will be very happy with the outcome!
If you have any questions, concerns, clarifications, or otherwise, please contact us on Discord via the support channel or Twitter/X. We are here to help.
Key Dates (all 2024)
August 6 – all existing loan listings removed from site and new loan listings capped at 14 day duration
August 16 – users will no longer be able to post new loan listings in USDC
September 3 – Circle (company that runs USDC) will pause USDC on Cadence
September 4 – Crescendo live on Flow’s mainnet
Note: we don’t have an exact date for when the loan repayments for active loans will happen, though we can confirm the repayments will take place in advance of the USDC contract being paused and make an announcement as soon as we know
FAQ:
Will loans return to normal?
Yes, these are short-term changes to address a difficult ecosystem transition. As soon as we have added support for the new Wrapped USDC token, users will be able to list without restrictions once more
We do not have an exact date for Wrapped USDC support - please monitor our Discord and Twitter/X for updates
Please note that FLOW token loans and new FLOW token listings will not be impacted in any way
Does this basically mean that borrowers with loans due on or after September 3 are getting free money?
Yes. Borrowers will qualifying loans will not have to repay their loans. Lenders will be fully repaid by Flowty / Flow Foundation.
Where is the best place to learn about the upcoming changes?