Indigo Protocol’s Upgrade to V2 | Post-Mortem

3 min readMay 9, 2024


Reflecting on Indigo Protocol’s Upgrade to V2

The recent transition of the Indigo Protocol from V1 to V2 was a significant milestone for Indigo, marking the first on-chain upgrade performed live on Cardano through decentralized governance. The entire upgrade process, completed within six hours, ensured that on-chain operations continued seamlessly while the web-app was temporarily offline, thereby maintaining protocol integrity with minimal disruption. Conducted at 5 AM EST on a Monday, the upgrade’s timing leveraged historically low market activity hours, facilitating a seamless process. The decision to upgrade the protocol as a whole rather than in segments simplified implementation, minimized potential errors, and ensured consistency across the platform.

Zero Loss

The upgrade was executed without loss of funds. Indigo Labs’ meticulous planning and readiness plan facilitated multiple successful preprod network test upgrades before the mainnet transition. Over 6,000 UTxOs were seamlessly migrated within a three-hour window, with no noticeable chain overload or disruption to other Cardano Dapps and transactions.

Pre and Post Upgrade

In the lead-up to and following the V2 upgrade, Indigo Labs prioritized extensive preparation and due diligence. Educational content such as articles, X threads, discord communications, governance proposals, Guru bot web app integration, along with outreach initiatives like the POG, to provide ample resources and keep users informed. This proactive approach significantly reduced user confusion and minimized support queries, empowering users to navigate the upgraded system with confidence. Post-upgrade, the development team swiftly identified and resolved minor web-app or off-chain errors, promptly addressing and remedying the few detected bugs to ensure a smooth transition. Remarkably, fewer than 10 support tickets were reported in the 24 hours following the upgrade. Moreover, enhancements to the web-app were implemented seamlessly, significantly improving the number of available data points and overall UI/UX.

The integration of the upgrade process with the protocol’s governance structure, involving community input through voting and feedback, showcased fully decentralized governance in action. The community actively participated from the development proposal of V2, through the launch proposal, to the parameters proposals, demonstrating a robust model of user empowerment and engagement. This upgrade sets a benchmark for future upgrades on the Cardano blockchain and highlights the autonomous upgrade capability of the system.

V2 introduced pivotal features like the Maintenance Ratio (MR) and Redemption Margin Ratio (RMR) designed to enhance the protocol’s stability and economic resilience. Reflecting on this successful upgrade, the disciplined project management, thorough testing, and strategic user education show the importance of these elements being further improved and continued in future updates. This process ensures that the Indigo Protocol remains at the forefront of the DeFi sector and helps attract seasoned DeFi users to Cardano through a more mature protocol.

Looking Forward

Indigo Labs plans to implement features more frequently but through smaller, more agile protocol upgrades moving forward. An algorithmic interest mechanism is currently being developed and configured based on data gathered during this period of a DAO-managed interest mechanism. Championed by a DAO Member’s temp check proposal, redemption is set to be enabled in the coming weeks if approved. The new toolset brought by V2 will begin to be used to adjust and configure the protocol to balance opportunities for Stability Providers, INDY Stakers, iAsset spot holders, CDP leveragers, and other protocol use cases. As a result, Indigo Protocol will become more adaptive and responsive to market needs, ensuring enhanced stability and value for all users and stakeholders involved.

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Indigo is a decentralized synthetic asset issuance protocol built on Cardano