AIP-8.2: Increase AUSD utility by providing access to high-leveraged AVs
Background:
In March, we announced multiple improvements to AUSD 3 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 second vote in the series of two votes.
First Vote: The first vote has passed.
Second Vote:This is the second vote to determine the parameters for limiting access to the vaults.
This vote will be done through Ranked choice Voting as described below:
Ranked choice voting (IRV) Each voter may rank any number of choices. Votes are initially counted for each voter's top choice. If a candidate has more than half of the vote based on first-choices, that choice wins. If not, then the choice with the fewest votes is eliminated. The voters who selected the defeated choice as a first choice then have their votes added to the totals of their next choice. This process continues until a choice has more than half of the votes. When the field is reduced to two, it has become an "instant runoff" that allows a comparison of the top two choice head-to-head.
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.
Resolution:
Community votes for Option#1 (#1.0 worth of AUSD3EPS locked for $1 allocation)
References:
Last updated