The Gainify project is shutting down, please read the following article to understand next steps for users
Unstake Now
All users of the Gainify app who can remove their LPs or stakes are recommended to do so immediately. There is a critical error in the contract produced by Leo that will eventually prevent people from unstaking their assets.
We’re asking the Algorand Foundation and Pera Wallet to remove us from the ecosystem directory and discover wallet tab as well.
Contract Errors
We have conducted an audit on the contract and discovered a variety of issues and errors with its production. One error revolves around rewards miscalculation, which we have rectified by paying users for the error out of our own pockets to this point. There have been 10+ instances of this miscalculation so far, costed us hundreds of ALGO, and there would continue to be errors in the future based upon variables like staked token supply & decimal amounts. There is a severe flaw in the contract’s logic that prevents rewards from being distributed accurately.
In addition to reward miscalculation errors, there are errors with accounting for NFD boosting on partial unstaking actions, tracking total stake amount, and box storage limitations amongst others. The contract used in the app is severely flawed and according to who wrote it, will require a near complete re-work to even allow users to unstake.
Developer Failure
There have been persistent errors on the front end from testnet until now. During testing, we produced over 25 different feedback documents that highlighted errors. Allan, the developer from rxelms who created the front end, has since cut off contact with us, and refused to address issues with his code that have persisted from delivery to us until now.
The flippant messages above were in response to box read budget errors that have never gone away. Allan deployed a short term fix (3 days) that quickly failed after deployment. He provided instructions to continually patch the error, and as of the past week, Leo stated the box read errors will be ever-present.
The point about having zero investment or incentive in Gainify is problematic, as the errors produced by these two developers have to led to a situation where users cannot unstake their funds. We did not contract them to deliver an app that locks users funds and makes them inaccessible. They actually do have an incentive to ensure the code they delivered works, as their reputations rely upon producing functional code. But they don’t see it that way, as they have been quite comfortable residing in the shadows and leaving us to do the heavy lifting in public.
For reference, these developers produced a quote for delivery of a functioning app on Sept. 22, 2024 and gave a month timeline. No one put a gun to their head and said “do this work for this money in this amount of time.”
The app went live for public beta on Jan. 31, 2025. The original timeline was missed by 100 days with no remuneration. In the real world of business, there would have been service level agreements and deliverable benchmarks. Missing deliverables and violating the SLA would have recouped funds we paid to them, or reduced future payouts.
During the delays, the GAIN token suffered severe sell-offs as the market lost confidence in us. That started in November of 2024. At no point did these developers take ownership for their failures, delivery delays, or the effect it had on our project & community. To this day, they have taken no ownership for producing flawed code that people have been using on the Gainify app.
That ends today.
Remedying Users
We have attempted to work with external developers and internally on the Gainify team to rectify the problems caused by Leo’s faulty contract code that prevents unstaking. The developer we interacted with stated there are too many errors with the contract in current form, and a remedy would require a total re-write of both the back and front end. This means months of users not having access to their funds while they’re inaccessible in a contract.
Faced with this, we went back to the original developers who wrote the flawed code and asked for their assistance. The response was this:
So after originally contracting them to deliver the app and it was delayed by 100 days, and now encountering critical errors that prevent people from unstaking, Leo wants another $750 from us. Later, he said he could do a “quick fix” for $200, but we have no confidence in his ability to actually patch code he originally screwed up.
We are vehemently against being extorted by low quality developers who shipped code that locked away people’s funds.
We found three potential options to overcome these challenges.
1. Pay Leo and Allan more money to fix this specific error, while not providing permanent solutions for the litany of other errors that exist in the contract. Additionally, if they could actually fix these errors they wouldn’t exist in the first place. This is not an option for us.
2. Put out a public call for help and hope someone can figure out how bad Leo and Allan messed things up and fix it. This option has too many variables and no guarantee of actually fixing anything. Which leads to users having funds locked away for undefined amount of time.
3. Force their hand by sunsetting our project and returning control of the code they produced to them, so they will have no choice but to remedy the errors as quickly as possible and making things right for users with funds that are locked away.
According to Leo, he can fix the error if we pay him $200 — $750 + whatever random dollar amount Allan comes up with. So it can be fixed, it’s just a matter of who pays, how much, and the inevitable delays that will arise from their shoddy work. They missed their first delivery date by over 3 months, so what would happen here?
An ethical developer would see these issues and fix them to preserve their reputation and signal their capabilities. Unfortunately, we didn’t work with ethical developers. We worked with greedy ones who have no problem locking away users funds and hiding from it. Now though, they have no choice but to address the issues they created.
We are pursuing option 3 and have handed control of the contract back to Leo. It’s now up to him and Allan to deploy a fix as fast as possible and navigate the impacts their code has caused. If your funds are currently stuck in Leo’s contract, you can contact him on X or in the Shinobi discord to get an update.
Team Holdings
Over the next 24 hours we will be burning team wallets in bonfire. This includes LPs we have created, GAIN/XVX token holdings, and any other assets we created and host in our team controlled wallets.
We have no intention on further impacting the market & ecosystem. We could easily dump millions of GAIN and walk away, instead we have decided to just burn them.
We’ll also be sending out the Q1 airdrop to NFD holders and following through on what we had said we’d do in that regard. The airdrop doesn’t amount to much, but we’re following through
Gainify Sites
The main website gainify.xyz will be deprecated immediately. As will the gitbook and discord server. The @gaintoken X account will remain up for the time being, with the most recent post pinned. We will continue to host app.gainify.xyz through the end of the month. If the fixes that allow users to unstake are deployed before the end of the month, users can access the Gainify app at the original site. If the fixes that Leo and Allan produce take longer than May 1 to deploy, then they will have to reproduce a new site to interact with the app.
There will be no future medium or X posts on this account, and the community channels are closed. All comments and questions about fixing the app can be directed to the authors of the code — Leo & Allan.
Final Points
When we launched GAIN a year ago, we had plans and hopes of stimulating the ecosystem. We believe we achieved many of our goals, but we cannot be extorted to navigate the development challenges surrounding the code that was delivered to us. The contract is held together with shoestrings and bubblegum, and the front end is a disaster in itself. We will not be paying thousands of dollars every couple months to fix errors in the code that have been present since it was handed off to us.
We did conduct a testing period, we did record and relay feedback. But what we didn’t know, nor were made aware of, was that there were artificial limitations on usage — meaning if X number of people use a pool it will cause errors. We were never told that if people leave their assets in a pool for an extended period of time it would create major errors. Nor did we know or were made aware that we would have to patch errors on the front end in perpetuity. All of this has come to light in the past couple weeks after we worked with developers who didn’t write the original code.
Had we known that the contract was this flawed, and that the front end was created like a jr. high school project, we never would have pushed it out to the market.
We apologize to our community, to people who are stuck in pools/farms, and to the readers of this article who have not used our app. We’re in a damned if you do, damned if you don’t position. As such, we feel the best option to get users funds back as quickly as possible is to put the onus on the people who wrote the code — Leo and Allan. As they cannot hide behind us, we surmise the fix will be deployed much quicker than a month timeline and without a $1,000 bill.
They need to fix this for you, as they are the ones responsible for your inability to access your funds.
The publishing of this article marks the closure of the Gainify project. The Gainify App terms of service will be pasted below for reference.
As Leo said above, we wish you the best of luck.
Gainify App Terms of Service Agreement
Welcome to the Gainify App! By accessing or using our platform, you agree to be bound by these Terms of Service (“Agreement”). If you do not agree with any part of these terms, you must not use our services.
1. Introduction
The Gainify App provides a decentralized finance (DeFi) platform where users can engage in token farming or staking activities. These services are provided on an “as is” basis without warranties of any kind.
2. Acceptance of Terms
By using Gainify, you confirm that you have read, understood, and agree to be bound by this Agreement. If you are entering into this Agreement on behalf of a company or other legal entity, you represent that you have the authority to bind such entity to this Agreement.
3. Use of Platform
You agree to use Gainify only for lawful purposes and in a way that does not infringe the rights of, restrict, or inhibit anyone else’s use and enjoyment of the platform. By using the Gainify App, you agree to adhere to your local laws & regulations; including tax reporting & accessibility of DeFi products.
4. Risks and Liabilities
Volatility: Cryptocurrency and DeFi are highly volatile. Prices can rise or drop significantly and rapidly, leading to potential financial losses. Users should understand the underlying mechanisms of providing liquidity, and properly vet any assets they farm or stake. Gainify is not responsible for educating users on assets listed on the app, nor does this listing of any asset represent an endorsement from the Gainify team or community.
Smart Contract Risks: The use of smart contracts in DeFi involves inherent risks due to potential bugs or vulnerabilities in the code.
Liquidity Risks: Tokens might suffer from low liquidity, which can impact their tradability and value.
Regulatory Risks: Regulatory changes might affect the legality or functionality of DeFi protocols globally.
5. Disclaimer of Warranties
Gainify makes no warranties or representations about the accuracy or completeness of the content of the platform or the content of any websites linked to this platform. To the fullest extent permissible by applicable law, Gainify disclaims all warranties, express or implied, including, but not limited to, implied warranties of merchantability and fitness for a particular purpose.
6. Limitation of Liability
To the extent permitted by law, Gainify shall not be liable for any indirect, incidental, special, consequential or punitive damages, or any loss of profits or revenues, whether incurred directly or indirectly, or any loss of data, use, goodwill, or other intangible losses, resulting from:
- Your access to or use of or inability to access or use the Gainify App;
- Any conduct or content of any third party on Gainify, including without limitation, any defamatory, offensive, or illegal conduct of other users or third parties;
- Any content obtained from or through Gainify; or
- Unauthorized access, use, or alteration of your transmissions or content.
7. Indemnification
- You agree to indemnify, defend, and hold harmless Gainify, its affiliates, licensors, and service providers, and its and their respective team members, directors, employees, contractors, agents, licensors, suppliers, successors, or volunteers, and assigns from and against any claims, liabilities, damages, judgments, awards, losses, costs, expenses, or fees (including reasonable attorneys’ fees) arising out of or relating to your violation of this Agreement or your use of the Gainify App.
9. Changes to Terms
Gainify reserves the right to modify this Agreement at any time by posting the revised Agreement on the platform. Your continued use of the Gainify App after any such changes constitutes your acceptance of the new Agreement.
10. Contact Information
For any questions about this Agreement or Gainify, please email us at contact@gainify.xyz.
By using the Gainify App, you acknowledge that you have read, understand, and agree to be bound by this Agreement. If you do not agree to this Agreement, you must not access or use the Gainify App.
Last updated 5 months ago
