In March, we announced multiple improvements to AUSD including a move of the AUSD liquidity pool to Ellipsis and an allocation of dev fund to AUSD peg insurance.
We now would like to propose adding AUSD as another mechanism for access to high-leveraged Automated Vault.
By granting access to high-leveraged Automated Vaults to AUSD holders, we will increase its utility and demand for holding AUSD, which would help support the AUSD peg and its adoption.
The implementation will follow a similar pattern as xALPACA, with the following details:
(Please note that this proposal will provide an additional method for accessing high-leveraged AVs. xALPACA holders will continue to receive access as per AIP-6 resolution.)
Locked tokens: users will need to stake Ellipsis’s AUSD3EPS LP token for access to high-leveraged AVs. This option will provide the highest capital efficiency for our users as they will continue to earn yields from trading fees. The locked LP tokens will also be staked in the FairLaunch contract on users’ behalf to continue receiving ALPACA rewards
Staked duration: user can choose the lock duration between 1 - 52 weeks. Similar to Governance vault, the longer the duration, the higher allocation they will receive.
Allocation: We propose a similar structure to xALPACA where $x worth of LP tokens locked for 1 year to receive $1 dollar of allocation in the high-leveraged AVs. The community will vote on what the $x should be.
Other implementation notes:
- Since users can add any combination of tokens in the AUSD3EPS LP token, we will limit the total AUSD that can be borrowed if the price falls below a pre-determined threshold. This would force users who want access to either add other stablecoins in the pool (e.g., BUSD, USDT, etc.) or purchase AUSD from open market to add to the pool. Both of these actions would help increase AUSD price to the peg.
For absolute clarity and fairness, we will do a series of two votes for this AIP.
First Vote: To determine if we should extend the access to high-leverage vaults to AUSD3EPS LP token holders. This will be a simple YES or NO vote.
Second Vote: If the first vote passes, we will then have a second vote to determine the parameters for limiting access to the vaults.
The implementation will follow the same pattern to the xALPACA holder:
- Allocation will be across all high-leverage vaults
- Linear Allocation
- Dynamics ratio, adjusted on a monthly basis at the beginning of each month. To prevent manipulation, we will use TWAP of AUSD3EPS for the 1 week prior to the ratio adjustment.
Voting will be on setting the AUSD3EPS allocation ratio only .
Option1: $1.0 worth of AUSD3EPS locked for $1 allocation (same as xALPACA)
Option2: $1.5 worth of AUSD3EPS locked for $1 allocation
Option3: $2.0 worth of AUSD3EPS locked for $1 allocation
Option4: $2.5 worth of AUSD3EPS locked for $1 allocation
Option5: $3.0 worth of AUSD3EPS locked for $1 allocation.
Option6. $3.5 worth of AUSD3EPS locked for $1 allocation.
Option7. $4.0 worth of AUSD3EPS locked for $1 allocation.
Edit note: Updated voting options to reflect the final choices