Reduce INV Rewards for WBTC, ETH, YFI, xSUSHI, and FLOKI. Modify Certain Other Features of Anchor

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Background

In light of the INV price manipulation incident that occurred on April 2, 2022, we propose reducing certain INV rewards on Anchor in order to redirect them boosting DOLA DEX liquidity. Specifically, we propose reducing INV rewards for WBTC, ETH, YFI, xSUSHI, and FLOKI to zero.

Also, the collateral factor for DOLA today is set at 70% and similar to other stablecoin CF’s in the marketplace today, this proposal would raise this to 85%.

Finally, there is a need to add a new section to Anchor for assets which the DAO votes to deprecate. While there are currently more than $6MM in FLOKI assets on Anchor, there is no valid Chainlink oracle for the new FLOKI contract and we recommend FLOKI be moved to this new “Deprecated” section until the DAO votes to enable deposits and borrows against a new FLOKI asset with accompanying Chainlink oracle.

On-Chain Actions: Reduce INV rewards on WBTC, ETH, YFI, xSUSHI, and FLOKI to zero. Raise DOLA collateral factor to 85% Move FLOKI to new Deprecated Assets section on Anchor

3 Likes
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Looks good, I 100% agree with adding FTM to Anchor and also reducing FLOKI rewards to 0.
Perhaps hold back on reducing xSushi to 0 - I am currently in the process of analysing all assets on Anchor and the borrows against them for a proposal to rebalance Anchor rewards, so it makes sense to include an xSushi rate change in that proposal instead.

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Sounds good - will adjust

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Also editing to raise CF for DOLA deposits to 85%.

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Including FTM in Anchor, also exposes Anchor to potential chain bridge risks. Is this part of the risk assessment, and if so, how is bridge failure risk assessed?

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  • Removed mention of changes to INV rewards, which will be part of a separate proposal
  • Added 2MM FTM supply cap to address bridge risk, which may be modified but is also a good best practice for adding new x-chain assets.
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added link to risk assessment Risk Assessment - $FTM and the Fantom Foundation - Google Docs

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In light of the price manipulation incident on 4/2, we, this proposal is being edited as follows:

  1. Remove FTM as proposed collateral (for now)
  2. Remove planned changes to Anchor code (short delay)
  3. Reduce INV rewards for WBTC, ETH, YVI, xSUSHI, and FLOKI

Also title of proposal on GovMills changed to: Reduce INV Rewards for WBTC, ETH, YFI, xSUSHI, and FLOKI. Modify Certain Other Features of Anchor