Update iUSD, RMR = 300%

[Spuds]

Why:

Further incentivizes peg stability.

How:

Updating iUSD Parameters to RMR = 300% allows more redemptions at oracle price which improves peg stability.

What:

Im starting this discussion now in hopes of expediting the process if the DAO votes in favor of the parameter change linked below.

Depending on how the previous proposal goes this proposal may or may not end up on-chain. But starting the Temp Check now allows us to act quicker if it proves to have DAO support.

So get caught up in discord and here in the forum and lets keep the conversation going.

Update iUSD, RMR = 250%

Why: Further incentivizes peg stability. How: Updating iUSD Parameters to RMR = 250% allows more redemptions at oracle value which aids peg stability.

Proposal for iUSD Parameters change

Proposal for Parameters change Introduction Following the launch of Indigo Protocol V2, new parameters were introduced to enhance peg management. The interest rate for the iUSD market was initially introduced at approximately 21%. This introductory rate was intended to allow CDP users to adjust to the new interest environment gradually. However, this rate remains significantly lower than comparable markets and has not sufficiently improved the peg. This proposal aims to align Indigo’s rates w…

[mrgrauel]

Strongly in favour and I like the approach to begin before 250% was on-chain.

[Vlashe]

RMR does not help depeg… halting minting helps, halting until there is algo interest rate + other tools (e.g. algo halting minting in case depeg reaches certain level - an indicator of oversupply - and once peg is restored, the minting becomes available automatically again).

[RedXIII]

In favour of this proposal

[Cooltown-SM]

Terrible proposal that doesn’t pay attention to what has happened so far.

Since you have increased the RMR multiple times:

• The peg has not been maintained.

• INDY token value crashes faster.

Keep increasing RMR means keep chasing people away from using the protocol, and thus destroying the value of the protocol. The peg will never be maintained by increased RMR. It’s simple and basic math.

[The_INDY_Man]

INDY token price has no link with the RMR.

Also, we never set higher RMR than 185% as we started at 150% if my memory is right (please correct me if i’m wrong thanks). Higher RMR would force iUSD repeg.

I’m also in favor of this proposal.

[AdaBeacon]

No, no, a thousand times no.
RMR is a cannibalistic way of restoring the peg and we are witness today of the effects.
You got your “peg” but with almost half the market liquidity drained
(referencing DexHunter’s Pool liquidity dropping from 15M ADA to 8.44M ADA over 1 month)
iUSD is now more vulnerable to price swings and instability.
Just today the 24hr trading volume is 6.4M ADA. This is not healthy for iUSD.

I understand there is not an easy answer to getting the peg but we should be protecting our users in this time of crisis, not mugging them.

[Cooltown-SM]

@AdaBeacon , it also doesn’t even really restore the peg, and that’s my main issue. It might restore the peg for a few days and wipe out some CDPs, but that’s it. Fast forward a few weeks and when the next market volatility strikes, the peg will be offset. This is what the people who keep proposing these RMR increases don’t seem to understand…

Too bad we can’t have some kind of transparency linked to the wallets of the users on this forum to see people’s positions and therefore their incentives for a certain result.