Context
On v1 STBL is now trading under peg.
This is very bad optics for Algofi in general, seeing STBL unpegged also cast an unfavorable light on STBL2.
In addition, the current “rule” states that if STBL is trading below 0.99 for 24 hr, then the borrow rate for STBL should increase by 0.25%. This rule is not being applied consistently which also casts a very bad light on Algofi in general; in the last five days we should have seen five increases, and we only saw one.
We need to stabilize STBL and we need to actually apply the rules we state.
Proposal
Change the stabilization mechanism as follow:
For every 24h period where STBL is trading below 0.99, the STBL borrow rate shall increase by 1% and for every 24h period where it is trading above 1.1 the borrow rate shall decrease by 1%.
Needless to say, we shall also actually apply the rules consistently and seriously.
Poll
I am in favor of putting this proposal up for official vote
Hi, appreciate the answer and I agree with you: the objective should be to incentivize the migration from v1 to v2, as you can imagine I have a sizable amount of STBL1 on v1 and would love to migrate that to v2 but it makes no sense to convert STBL at a loss given its pristine backing.
I will close the poll and let this proposal go, looking forward to the new proposals to be put up soon.
I really think it’s critical to ensure an orderly phase out of STBL, one day we will have v3 and the fate of STBL1 today is a forewarning to the fate of STBL2 tomorrow, let’s not underestimate that.
Finally, one piece of feedback meant to be absolutely constructive and coming from a strong supporter of Algofi: the management of any rule that is stated by the project and that has to be manually enforced by the team rather by the smart contracts is an immediate reflection of the trust the users can put in the team.
I can appreciate it can be a pain in the neck given the relative importance of STBL1 in the grand scheme of things, but a rule is a rule and trust cannot be selective.