TLDR; with the launch of Enso V2 this month, the Enso team will no longer develop and technically support Enso V1 on Ethereum mainnet. All funds should be withdrawn from Enso V1 on classic.enso.finance.

Achievements

Enso V1 was launched in March 2022 with the successful migration of $5m+ TVL from the vampire attack that went live in December 2021. With 2 completed audits, 2600 whitelisted users to interact with the platform and over 500+ strategies created on the platform, the project gained attention in the web3 space and attracted a solid community.

Background

We are proud of what we have achieved. Whilst developing this first version, it became clear that in order to full-fill the Enso vision of conveniently interacting with many platforms through one interface, the V1 design was not suitable.

For learning purpose and considering it adds value to the ecosystem, we would like to share a few key challenges which arose during the development of Enso V1:

1. Oracle maintenance: Enabling a tokenized strategy position that handles many different interactions such as swapping, lending, borrowing, and arbitrary calls, requires an oracle system that updates the associated price to the assets inside of the position. Therefore, any wrapped token or farming token requires a price associated to prevent a malicious strategy creator from obtaining funds of investors.
2. Performance fee: Introducing a performance fee associated to the strategy position token for the creator, results in rather high gas costs for the creator, given the creator must claim and burn the respective token and pay all occurring gas costs.
   1. Burn gas cost + (transfer gas cost * assets inside)
3. Creator maintenance: DeFi is limitless in many regards with new protocols arising everyday. A concept where the creator of a strategy needs to continuously restructure (i.e. sell assets to enter new positions) on behalf of the strategy investors, would require a highly profitable strategy, for the strategy creator to justify their expenditure of paying on behalf of the strategy investors.
4. UniV3 TWAP reliance: UniV3 has deployed on many more EVM chains, however Enso V2 is compatible with any EVM chain by architectural design from day 1, so if a new EVM chain got deployed 5 minutes ago, then Enso V2 can be utilized on the respective new EVM chain. Enso V1 relied upon UniV3 TWAP system within V3 heavily in terms of its oracle, and was therefore limited in its potential by Uniswaps deployment on EVM chains. The initial Uniswap TWAP system was developed for PoW and as Ethereum is moving to PoS there are potential security issues that may arise using this method, you can read more directly on Uniswaps blog.
5. Philosophy: We believe there is a more philosophically and technically sound way to develop the Enso product. than having a creator manage users funds on users behalf.
6. Ecosystem vision: Introducing 15+ integrations by building manual Smart Contract adapters, which relatively speaking in the current ecosystem is a lot, is not scalable. Our vision of the ecosystem with 100,000+ applications running on a daily basis across all EVM networks is reflected in Enso V2.

While the Enso V1 product offered tremendous user experience and more features than any social trading platform that exists in the ecosystem as of today, the aim of Enso V2 is to ultimately pioneer in the ecosystem by envisioning it’s future potential within the coming 2 years, at least from an architectural design and product perspective.

Open Source

Below are links to Enso V1 public code

1. Subgraph public, which pushed the edge of how subgraphs were developed during the period of Enso V1 development.
2. Enso V1 Smart Contracts public for other teams to learn from the codebase.

💡 These codebases have been deprecated. Use of this code is at your own risk, and Enso does not take any responsibility or liability for vulnerabilities or any impact thereafter, caused by learning from or utilizing this codebase in any form. 💡

Timeline

The sunsetting process is intended to be as straightforward and seamless as possible for all users and planned as follows:

1. 01/05/23 → No new deposits allowed on V1
2. 01/10/23 → Enso V1 interface shutdown

Whilst the interface is shutdown, the possibility of going directly to the contracts on Etherscan remains. Further information on accessing contracts directly on Etherscan can be found in the classic documentation.

Support

The Enso Team is committed to ensuring the smoothest sunset possible. If you require further information, please consider the following:

• Discord support → if you have any questions regarding the sunset, please join our Discord and leave your questions in the #sunsetting-v1 channel.
• Enso V2 Overview → In the following days a full overview of Enso V2 will be going live detailing many aspects of the new Enso version.

LEGAL DISCLAIMER

This article is neither an offer of nor marketing material for financial instruments or financial services. Enso Finance is not regulated under any financial market laws in any jurisdiction. It is only the developer and provider of the ENSO protocol. Due to its decentralized nature, the ENSO protocol is neither controlled nor operated by Enso Finance. Strategies on ENSO V1 protocol are created, deployed and managed by the users of ENSO protocol. Enso Finance is neither providing financial services nor offering financial instruments.

Any liability is excluded to the extent permitted by applicable law.