QUADRIGA INITIATIVE
CRYPTO WATCHDOG & FRAUD RECOVERY PLATFORM
A COMMUNITY-BASED, NOT-FOR-PROFIT
$20 000 000 USD
OCTOBER 2024
GLOBAL
ESSENCE FINANCE
DESCRIPTION OF EVENTS

"A fully-collateralized, decentralized stablecoin built around the needs of the decentralized finance ecosystem. Providing access to a scalable solution for a decentralized stablecoin."
"Essence Finance is unlocking a new paradigm for decentralized finance, providing a stable and decentralized way to store and transfer value, without sacrificing the core principles of decentralization and security."
"Integrate CHI into existing apps or use it to build new innovative services. Give your users access to the stability of the dollar while maintaining decentralization."
"Yes, CHI can always be redeemed for $1 of collateral through the dApp. Essence Finance will always maintain a minimum collateral ratio of 100%, meaning CHI will always be redeemable for the underlying collateral."
"Users can issue new CHI into circulation by depositing $1 of collateral (+ a small fee), this process is referred to as minting. Similarly, when a user wants to redeem CHI in exchange underlying collateral, it removes CHI from circulation, this is referred to as burning."
"ZEN is the governance token of Essence Finance. Essence is a community-driven protocol, and ZEN holders are the collective stewards of the PCV (Protocol Owned Value) and the Essence ecosystem."
"A core principle of Essence is its fully decentralized design and minimal dependence on any centralized assets or protocols. It is controlled by the ZEN token holders. The Essence DAO is responsible for utilizing all of the flexible and power features of Essence to continually enhance the protocol in an ever-changing DeFi space."
"Scroll ecosystem stablecoin project Essence Finance is suspected of rugpulled, its stablecoin CHI has fallen by more than 92% to $0.077 in the past 24h, more than $20 million of collateral is suspected to have been removed. The last tweet was posted on September 11. The audit report of the project comes from FEI Protocol V2."
"ChainCatcher news, the Scroll ecosystem stablecoin project Essence Finance is suspected to have undergone a Rug Pull, with its stablecoin CHI dropping 93.94% to $0.06 in the past 6 hours, and over $20 million in collateral is suspected to have been removed. The last post from its official X was on September 11. The project's audit report is from FEI Protocol V2."
"Early on Oct. 26, the U.S. dollar value of Essence Finance’s decentralized stablecoin, CHI, plunged by more than 90% after rumors emerged that more than $20 million of collateral had been removed. According to Geckoterminal data, the value of the stablecoin, which normally trades at par with the U.S. dollar, dropped by nearly 98% to $0.01338 in less than 24 hours. The huge drop has sparked allegations of a rug pull against the protocol’s developers. At the time of publication, Essence Finance had not issued a statement about the incident or acknowledged its impact on the protocol’s operations."
Essence Finance promised a fully collateralized stablecoin named CHI, which was supposed to be fully backed more than 100% by assets. The stablecoin traded at a rate very close to $1 USD right up until October 25th, when the price started rapidly falling. The project is accused of performing a rug pull, extracting the $20m worth of liquidity backing the stablecoins. While the project has not posted an update since the price event, their Twitter/X account and website remain online.
Essence Finance - The Stablecoin For DeFi (Dec 3)
Introduction | Essence Finance (Dec 3)
https://www.coingecko.com/en/coins/chi-usd (Dec 3)
Stablecoin Plunges 98% in 24 Hours, Sparks Rug Pull Allegations – News Bytes Bitcoin News (Dec 3)
https://www.bitget.com/news/detail/12560604306420 (Dec 3)
The Scroll ecological stablecoin project Essence Finance is suspected of a rug pull - ChainCatcher (Dec 3)
CHI/USDC - Chi USD 在 Tokan Exchange 上的价格 | GeckoTerminal (Dec 3)
@WuBlockchain Twitter (Dec 3)
Scroll Ecosystem Stablecoin Project Essence Finance Suspected of Rug Pull - Cointime (Dec 3)
@Essence_Fi Twitter (Dec 3)
