[For Discussion] Adjust the xALPACA Private Automated Vaults Allocation Ratio

Community Discussion & Proposal Protocol Parameters
1

Background:

In the recent proposal AIP-8.2, the community voted to allow AUSD3EPS liquidity providers to participate in the private automated vaults at a ratio of 1$ of allocation per 1$ worth of AUSD3EPS.

I would like to ask the community their opinion on adjusting the ratio for xALPACA to better reflect the different risk profiles between these two ways of accessing private automated vaults.

Rationale:

Staking ALPACA in the governance vault is subject to more market risk than holding AUSD3EPS LP tokens. This added risk should be compensated in the form of a lower allocation ratio than the near risk-free method.

Implementation:

I propose that we keep the ratio of 1$ of AUSD3EPS per 1$ of allocation as a baseline and reduce the ratio for xALPACA. The voting options could go as follows:

Option1: $1.0 worth of ALPACA locked for $1 allocation (no change)

Option2: $0.75 worth of ALPACA locked for $1 allocation

Option3: $0.5 worth of ALPACA locked for $1 allocation

Option4: $0.25 worth of ALPACA locked for $1 allocation

6 Likes
2

I agree on the general idea but I would wait at least that the AUSD requirement for private AVs is implemented and running for some time.

1 Like
3

Yes adjust them. There is still more then enough room in the AVs left. Also the decline of alpaca price doesnt help as the AV deposit value increases and the allocation value decreases…

4

I think was wrong idea because it gets against decentralization and against stakeholders interest to get more tvl.

5

How does that make sense? More tvl in the AVs will result in more fees which will benefit alpaca holders.

6

I agree, holding xalpaca in the governance token is way riskier than just holding a stable coin pool. Therefore, the xalpaca allocation should be less, I would vote for .50 or even .25.