Background
AIP-6 created a requirement to hold xALPACA to invest in the high-leveraged vaults ( https://docs.alpacafinance.org/governance/aip-details/aip-6.1-limiting-access-to-automated-vault)
However, we currently have a lot of extra capacity for the 8x AVs. Given the repurchasing mechanics, we are also less constrained by the vault’s size limit compared to when we were using the rebalance system.
Rationale
By removing xALPACA holding requirement to invest in high-leveraged AVs, we will remove a barrier to entry and attract more demand and capital to the vaults.
This will be beneficial to the protocol and xALPACA holders from higher the resulting higher revenue.
The extra capacity already demonstrated that there is currently not enough demand from existing xALPACA holders to invest in these vaults, so it makes sense to open up the vault to the larger audiences.
Implementation
- We will remove the xALPACA holding requirements to invest in high-leveraged AVs, allowing anyone to invest into the vaults.
- We will unlock the AUSD3EPS LP tokens, allowing any users that have locked the tokens to withdraw them. Since there are only roughly ~27k USD LP tokens locked, this should have minimal impact on the AUSD liquidity
Voting
This proposal will be a simple YES or NO vote.
- A YES vote would remove the xALPACA holding requirement from investing in hihg-leveraged AVs.
- A No vote would keep the requirement as is.