Mars Protocol News & Announcements

Martians, today we share our final update. The wind-down of Mars Protocol, as approved in MRC-165, is now fully complete. All liquidation LTVs have been set to 0, remaining borrow positions have been liquidated, and every last bit of user funds, held in credit accounts or in Mars v1, has been safely returned directly to your wallets. Funds held in Amber will follow in the coming days and will be communicated via Amber’s X channel. This brings an orderly close to a journey that began five years ago with a bold vision: to build the most powerful, user-centric credit protocol in the Cosmos ecosystem. From the early days of pioneering leveraged strategies and credit accounts, through countles...

Martians, the proposal to wind down Mars Protocol has now moved to the on-chain governance stage. Following the publication and forum discussion of [MRC-165] Proposal to Wind Down Mars Protocol, the formal proposal has been submitted to DAO DAO. If approved, execution will begin on February 24, initiating the structured wind-down process: • Gradual ~3% daily reduction of liquidation LTVs • Progressive deleveraging across all assets • Final LTV = 0 on March 21 • Full debt clearance and final migration • Distribution of remaining funds to depositors This represents the final governance step before execution. We encourage all token holders to carefully review the proposal and participate i...

Martians, today we published [MRC-165] Proposal to Wind Down Mars Protocol on the governance forum. After evaluating the current state of the protocol, including long-term sustainability, operational overhead, governance complexity, and growth prospects, contributors believe continuing normal operations is no longer in the best interest of users. The focus now is a responsible and orderly exit. The proposal outlines a structured wind-down from February 24 to March 21, 2026. Instead of an abrupt shutdown, liquidation LTVs across all assets would be reduced gradually (~3% per day), allowing borrowers to repay, add collateral, or close positions voluntarily. On March 21, all liquidation LTVs...

Update on Mars Wind-Down, Amber Continuity, and User Remediation Dear Mars Protocol Community, The exploit was a turning point none of us wanted — not the community, not integrators, and not the contributors who have spent years building Mars. We have read the feedback, we see the anger, and we understand it. Many of us believed Mars still had a future roadmap ahead. After this exploit, that future is no longer possible under the standards of integrity and user safety we hold ourselves to. After a risk and responsibility assessment, with user protection, operational complexity, and systemic protocol risk in mind, we reached a difficult conclusion: the Mars Protocol Foundation will wind d...

We will continue to communicate clearly as execution proceeds. Mars Protocol Foundation https://vxtwitter.com/mars_protocol/status/2014050834108108885 Neutron Foundation Relief Plan For Affected Mars Users: https://x.com/neutron_org/status/2014048218598838459

https://vxtwitter.com/mars_protocol/status/2010416903244673405

🛰 Heads-up on upcoming USDC market migration Ahead of the upcoming USDC market migration and haircut execution, we want to clarify what this means for borrowers. As part of the mitigation measures introduced earlier, the maximum borrow LTV was reduced (from 92% to 60%) to limit new borrowing ahead of the haircut. This was done to prevent accounts from increasing exposure beyond the forecasted haircut. The liquidation LTV was not adjusted at that time. When the haircut is applied during the migration, accounts that are currently borrowed above the safe threshold may enter liquidation, as their collateral value will be reduced accordingly. This mainly affects positions that remained above t...

🛰 [MRC-164] Update on Exploit Response and Action Plan - On-Chain Proposal We’ve submitted an on-chain governance proposal outlining the final steps to resolve the USDC market shortfall following the recent exploit. What this proposal does: • Executes a DAO treasury transfer of USDC to the Mars Protocol Foundation to repay USDC bad debt • Confirms a final USDC market adjustment of 27.5%, after applying Safety Fund, MPF, and CPV resources • Signals community approval for using additional MPF/CPV funds to further reduce user impact • Prepares a v2.3.3 Red Bank migration to reconcile USDC market accounting (executed separately after funding) This proposal focuses on a clear, deterministic pa...