ChainThink reports that on July 25, according to official statements from Main Street, Main Street has updated its liquidity and recovery progress, with its protocol coverage (excluding the insurance fund) nearing 100% at current valuations.
The team previously evaluated options to provide liquidity to holders, including limited early liquidation and combining open-market token purchases with burns. After consulting legal counsel, the team has determined that transactions temporarily reducing the coverage ratio are not advisable at this time, and therefore early liquidation or large-scale buybacks cannot be executed.
According to the expiration schedule, the first significant liquidity for the remaining "box" positions is expected to arrive in over 30 days. At that time, subject to updated coverage calculations and favorable market conditions, the team plans to place limit orders on the open market to purchase tokens for permanent destruction.
Additionally, the official team is designing a Morpho redemption mechanism that will restrict transfers of msY within affected Morpho contracts and introduce a dedicated redemption process to prevent unfair accumulation of high interest due to first-come, first-served dynamics and prolonged high utilization rates.
The related design still requires final legal, technical, and security reviews, as well as an independent audit.