Transition Liquidator Grant Program Rewards from DBR to DOLA

FiRM
1

Summary

This proposal aims to adjust the reward structure of the Liquidator Grant Program by setting the DBR allowance to zero and issuing a new DOLA allowance. All rewards under the program will now be denominated and distributed in DOLA in place of DBR.

Motivation

  • Stability of Rewards: DOLA offers a stable value, ensuring liquidators receive rewards with consistent purchasing power, unlike DBR, which may fluctuate in value.
  • Alignment with Treasury Management: Denominating rewards in DOLA aligns with broader treasury practices and simplifies accounting.
  • Liquidity Considerations: Transitioning to DOLA increases liquidity and usability for liquidators, making the program more appealing.

Specification

  1. DBR Allowance Update:
  • Reduce the current DBR allowance for the Liquidator Grant Program to zero.
  1. DOLA Allowance Creation:
  • Issue a new DOLA allowance of $5,000 to fund the program, equivalent to the previous DBR allocation.
  1. Reward Distribution:
  • Adjust the reward tiers:
    • Standard Liquidations: Up to $250 in DOLA.
    • Exotic Collaterals: Up to $500 in DOLA.
  1. Program Operation:
  • No changes to the program’s operational structure or reward eligibility criteria.

On-Chain Actions

  • Set Risk Working Group’s DBR Allowance to “0”
  • Set Risk Working Group’s DOLA Allowance to “5000”
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