Update iUSD, RMR = 250%

The problem, I see, is that we do not have the soft-peg mechanisms fully realized yet. Yes interest is accumulated, but currently protocol does not use this revenue at all. And you push only for the hard-peg changes, which should be used as a last resort depeg reversal. It is like jump starting car with no fuel in the tank. The redemption itself will not hold the peg for long, you need soft-peg mechanisms to take over once the car is jump-started. And keep in mind that interest is a huge part of the revenue for the protocol and when you redeem a lot of CDPs the revenue plummets. I agree that RMR should be increased, but it should not be drastic change and it should not be the only change.

Serotonin has a couple of interesting ideas how to use the revenue from interest and how to change the rewards structure to help the iUSD peg. Also dynamic interest rate and the requirement to pay off the outstanding interest when changing CDP are coming. These are the “soft-peg” mechanisms we need in place before we start drastically changing the hard-peg ones.

But if we really want to push the increase of RMR now and we really care about peg long term, we should consider also other changes to complement the increase of RMR. e.g. to temporarily stop minting or to change the MR to some high value

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