The Axo testnet has already exceeded our expectations. The extensive testing period not only demonstrated the robustness of our platform but also provided invaluable data and user feedback. These insights have been instrumental in shaping a series of enhancements that we are excited to start rolling out today. This marks the beginning of a transformative phase leading up to the liquidity seed event, where each upgrade is a step towards an even more efficient and cost-effective protocol.
Today’s upgrade consists of both on- and off-chain improvements to further minimize the load on Cardano and reduce execution costs, especially for complex algorithms. The upgraded protocol will require fewer transactions, a technical yet impactful advancement that greatly benefits all Axo users.
To implement these changes, the testnet needs to be temporarily shut down. The update will not be backward compatible, meaning that all active strategies will be closed and the funds returned to the owners. Rest assured, if there is ever an on-chain code update on the mainnet, it will be backward compatible.
To provide some background information, all orders on Axo are strategies. When you place an order on Axo, 2 NFT receipts are minted. The first is the strategy receipt, which lives inside a custom smart contract with your assets and the strategy details, the second receipt proves your ownership of the assets. This ownership receipt is minted to your wallet and allows you to easily see the related strategy details.
Think of the strategy receipt as a lock and your ownership receipt as the key to accessing that strategy. The ownership receipt grants you sole rights to modify the strategy and claim the assets within it.
Axo can never modify or access your strategies but can close (eject) them in case of a catastrophic issue. In the unlikely event that a security vulnerability is detected in the on-chain code, the protocol can easily return assets to the ownership receipt holders. The effect is the same as when a user cancels an order or when an order is filled — all assets are safely returned to the user’s wallet.
Today the ejection mechanism will be triggered to close the 1670 active strategies running on the testnet, with the performance upgrade running simultaneously. This process may take several hours and we expect more downtime over the coming weeks as new features are rolled out and stress-tested.
This Christmas season, we’ll be releasing a series of exciting features to the testnet in anticipation of our mainnet launch. Look forward to improvements in signal engine data speed and accuracy, NFT receipts with a burn mechanism, a comprehensive notification system and more.
Every testnet upgrade is another step closer to our vision of the future of finance. These enhancements are crucial, ensuring that when we transition to the mainnet, it will be a robust and reliable platform.
Thank you for your continued support and participation in our community. Stay tuned for more updates.