Remove stablecoins from the StableSwap module (AUSD)

Community Discussion & Proposal Others
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AUSD has lost all its utility but there are still 407.000$ in circulation not claimed. I propose to remove the stable coins from the StableSwap module and therefore claim the proceeds for the protocol after a reasonable period of time if they are not claimed.

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Let’s do it.

Notice should be voted. 15-30-60 days notice as options

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I would only support a 1:1 in value conversion with a very low fee. I really dislike the idea of confiscation. Surely we can not take what is not ours. Perhaps I am misunderstanding the term proceeds and you merely suggested the same. If not I strongly disagree.

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Let me add my thoughts on this.

1.) I don’t think it’s a good idea to just remove the stable coin, as that is equivalent to confiscating users’ funds. I am against this approach.

Alternatively, one potential approach we could do is mint $ALPACA from Warchest equivalent in value to the stables remaining. Then we would do an equivalent of an “OTC” where remaining AUSD holders would be able to redeem their tokens for $ALPACA instead of the stable coin. The stablecoin will then be available for use

If they are not claimed, then those ALPACA is effectively burned.

2.) I think the notice period should be on the longer side… 60 - 90 days at least.

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what about increasing the stability fee gradually to a serious amount (50-100%) until it almost dries out?

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Stability fee only applies to positions holders. These users are not holding debt positions, but just AUSD in their wallets.

Please let me know if this doesn’t make sense and can explain more.

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How do you plan on sunsetting AUSD?

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I believe this is the best option we should put this to a vote

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I like the OTC idea. But we should vote at what price we want to sell the tokens. Otherwise you are basically just selling those tokens cheap if you sell at current rate.

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10

Hello. Not sure if I understand your questions but AUSD has been sunset already per AIP-25.

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Oh I see thanks! I understand that people can still be holding it even though it is sunsetted.

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After further discussion, there are actually two possible options and I am sharing them below with their considerations.

Option#1: Buy ALPACA off open market

  • Use the remaining stablecoin to buy ALPACA in open market. -e.g., It could be TWAP over one week, etc.
  • AUSD holders will be able to redeem their AUSD for ALPACA instead.
  • With this option, we would reduce the ALPACA supply from the market and the ALPACA are effectively “burned” unless redeemed by users.

Option#2: Doing OTC with warchest

  • Mint ALPACA from warchest and do an OTC with the stablecoin, effectively converting a portion of the warchest into stablecoins for future uses
  • AUSD holders will be able to redeem their AUSD for ALPACA instead.
  • With this option, the ALPACA supply would only technically increase if users redeem them.

Please feel free to comments. I can move forward this discussion to an AIP / voting after we are done with AIP-30.

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Hi HC - please see the question above re: OTC…cant we set the OTC price via vote? I’m worried about using market rate as i feel like you’re wasting your warchest.
For example could we set the price at 0.30

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Hey Gianni. I think that can be a vote. But setting a price “significantly” above market rate could be viewed negatively.

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This topic has been created into an AIP. Please continue any feedback and discussion on the new thread.

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