[For Discussion] Handling of recent bad debt from UST-BUSD LYF pools

[huacayachief]

Background:

As many of you are aware, over the past several days, UST suffered from extreme price volatility and de-pegging.

On the Alpaca platform, we supported the PancakeSwap UST-BUSD LYF pool. To safeguard our users, opening of new positions have been disabled roughly about 12 hours ago (the morning of May 11th, Asia Time)

However, there was some bad debt occurred (3,976 USD) from existing potions.

Proposed Implementation:

To save the community and the team’s time, we propose that for this amount and any future bad debt amounts under 10k USD, the team will inform the community and exercise the Insurance Plan directly.

If the community agrees with this we will proceed with activating insurance plan without a vote.

[WhiteRabbit]

Okey, as the Nike slogan says - just do it

[huacayachief]

Judging by the lack for negative response and the amount of “hearts” on the original post, we will go ahead and implement the bad debt repayment.

Thanks everyone!

[danny]

Yes of course no problem! <3 I hearted it because I had nothing else to add (I think this one of the forum’s rules xD). As you mentioned in such event it’s always good to be transparent and “alert” the community.