AIP-8.1: Increase AUSD utility by providing access to high-leveraged AVs
Background:
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.
Rationale:
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.
Proposed Implementation:
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.
Voting:
For absolute clarity and fairness, we will do a series of two votes for this AIP. This is the first vote in the series of two votes.
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.
Resolution:
Community votes to increase AUSD utility by providing access to high-leveraged AVs
References:
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