V1 Wind Down Part 3. Tighten new asset constraints


Executed December 31st, 2022

The vast majority of capital has migrated to the V2 lending protocol which offers support for the complete set of V1 protocol functionality as well as a number of additional features and the modularity required to expand the protocol in the future.

With this it is prudent to take actions to continue winding down the use of the V1 protocol to free up community and developer resources to focus fully on the V2 protocol. While this is occurring naturally, there are simple steps the DAO can take to ensure this migration progresses.
These are limiting future borrows as well as limiting additional capital from being added as collateral in the v1 protocol.


These changes are to be applied to the V1 protocol ONLY.

All items are to be executed at the conclusion of the current Algorand Foundation Governance period 5 in order to give those currently using the V1 vault an opportunity to migrate to the V2 protocol without forfeiting governance rewards.

  1. Cap borrowing in the V1 ALGO, USDC, goBTC and goETH markets. Meaning no additional borrowing beyond the current levels will be permitted. Borrow positions will continue to grow through interest but otherwise will strictly decrease.
  2. Cap borrowing in the STBL market at 25% above the current borrow at the time of this action
  3. Cap supply in the STBL market at 25% above the current supply at the time of this action