VLONE has limited activity and holds fifteen assets issued through Universal, representing approximately 56% of its basket. Universal has announced that it will sunset its uAsset product suite at the end of October 2026.
Given VLONE’s significant dependence on Universal assets and limited activity, replacing these assets and continuing to maintain the DTF does not appear justified. For the safety of remaining holders, it is proposed to deprecate VLONE through the following series of actions:
Rebalance the entire basket into USDC.
Fully deprecate the DTF by removing all roles and calling deprecateFolio.
Rebalancing into USDC protects holders from the upcoming Universal asset sunset and makes future redemptions simpler.
Removing all active roles removes all control of the DTF, while calling deprecateFolio permanently blocks further mints and continues to allow existing holders to redeem.
Thanks again for bringing this to the attention of governors @pmckelvy.
At first glance, deprecating $VLONE stings more than the other DTFs with active deprecation proposals given it has maintained a market cap of around ~$250k over the past year.
However, looking deeper, it has seen only 9 mints over the last 3 months, totalling ~$420. Based on these figures, the annualised take rate is just ~$1,255/year, comprising ~$1,250 from the TVL fee and ~$5 from mint fees. Of this, only 40% (33.3% protocol fee + 6.7% governance fee), or ~$502/year, remains within the Reserve ecosystem.
Viewed in these terms, deprecation looks much more palatable, particularly when 56% of the basket sits in uAssets, many of which do not have suitable alternatives on Base. My only comment is that two addresses currently hold ~99% of the DTF in roughly equal proportions. I’m sure the core team is already in touch with the underlying holders, but if not, please consider reaching out and introducing them to similar products such as LCAP or CMC20 in an attempt to retain this capital within the ecosystem.
It is also worth noting that once deprecateFolio has been called, no further governance proposals can be submitted onchain. This removes governance attacks as a risk vector and helps secure holders’ assets until withdrawal, with little to no further oversight required from governors or ABC Labs.