This is a signaling proposal for the strategic wind-down of Inter Protocol. A positive outcome of this proposal would reflect the community’s readiness to provide the Economic Committee, the DCF, Agoric OpCo, and other stakeholders with a clear mandate to:

• Wind down Inter Protocol by mid-2025 through a phased deactivation of features.
• Support IST Vault and PSM users with resources and guidance to exit smoothly.
• Begin communications, governance, and implementation tracks for the deprecation process.

Wind-Down Execution Plan:

1. Cease IST Minting

• Disable creation of new IST via Vaults (reduce mint limits, pause minting contracts).
• Retain IST repayment and withdrawal functionality for a grace period. (see strategy below)

2. Vault Closure Process

• Vault users will reclaim collateral by repaying IST.
• Liquidation parameters will be adjusted incrementally to encourage closure. (see strategy below)

3. PSM Exit Strategy

• The community requests that DCF use best efforts to support adequate IST liquidity.

4. User Support and Communications

• Publish educational content and clear instructions for users.
• Notify via UI banners, Discord, community channels, and direct outreach to vault holders and whales.

5. Shutdown of Inter Protocol Infrastructure

• Deactivate Inter UIs (Vaults, PSM, Econ Committee Governance Portal).
• Sunset inter.trade domains and social accounts.
• Decommission oracles and auction services after vaults close.

Inter Protocol Sunsetting Strategy

​​The following strategy has been developed by the DCF in close collaboration with Agoric OpCo, the Inter Protocol Economic Committee, and other ecosystem contributors. It outlines the proposed steps for responsibly sunsetting Inter Protocol, with a focus on minimizing user disruption, preserving system integrity, and aligning with Agoric’s long-term priorities. This plan reflects DCF’s commitment to transparency, risk mitigation, and effective coordination throughout the sunsetting process.

DCF proposes a 60-day sunsetting period following approval of this signaling proposal. This window is designed to give IST Vault and PSM users sufficient time to unwind their positions and reclaim collateral in an orderly manner. During this time, key protocol functions will remain active to support user exits, and communication efforts will focus on ensuring all participants are aware of next steps, deadlines, and available support.

Timeline

April 28: Discussion period ends. The 3-day voting period begins. April 30: Voting period ends.

• If REJECTED: Inter Protocol continues as is.
• If PASSED: -- April 30: Begin Wind-down --- No new Vault openings --- No minting of IST via current vaults. --- Liquidation Fee set to 0 -- May 30 - June 29 EC begins weekly increases in the liquidation Ratio (LR). Rates will increase 50% each week, starting the week of May 29, until either: --- All vaults are liquidated, OR June 30 (on which date the ratio will be increased to a level that closes all vaults). Whichever comes first. -- June 30 T0 Shut down -- June 30 Post Shutdown Communication Strategy

What happens if you vote YES: A “Yes” vote signals agreement with the high-level direction to deprecate Inter Protocol by mid-2025 and begin coordinated communications, user offboarding, and technical transitions as outlined in the proposed wind-down plan.

What happens if you vote NO: A “No” vote will maintain Inter Protocol in its current state until further community action is taken. No technical shutdown steps will be taken, and the community will need to revisit this decision in a future proposal.

For deliberations of DCF’s arguments in favor of this motion, please refer to the signaling proposal discussion: https://community.agoric.com/t/sunset-inter-protocol-and-begin-wind-down-process/787

To hear Agoric’s reasoning to support this proposal, check out the recap of the latest Inter Protocol community call: https://inter.trade/blog/recap-of-the-inter-protocol-community-call-why-does-the-dcf-recommend-a/