We are hoping to increase the interest rates on two of our deprecated cauldrons with a TVL of $10M that currently reside on Bentobox, the cvxRenCrv and yvcrvstETH cauldrons:
- 0x35a0Dd182E4bCa59d5931eae13D0A2332fA30321
- 0x0BCa8ebcB26502b013493Bf8fE53aA2B1ED401C1
For the yvcrvstETH cauldrons, a faulty oracle poses a threat to users who have open positions.
For cvxRenCrv, the recent developments on the deprecation of Ren Bridge v1 make us uncertain on what the best path forward is with this kind of collateral.
Multiple other protocols have already begun discontinuing their renBTC markets:
Official Ren protocol Announcement:
-https://twitter.com/renprotocol/status/1595807696296751104?s=20&t=CtuQNjzFb0myRRgPDYDhYg
MakerDAO Announcement:
-https://twitter.com/MakerDAO/status/1595811489985748993?s=20&t=CtuQNjzFb0myRRgPDYDhYg
BadgerDAO:
-https://twitter.com/BadgerDAO/status/1593315230410481665?s=20&t=sggRkIBlSFnb_ey64JRhxQ
The Abracadabra design does not have the power to forcefully close an open position for any reason. What we can do however, is increase the interest rate to incentivise users to do so, which means that these users will pay the protocol for the risk exposure their position is creating.
We have also encouraged our users to close their positions in said markets here.
Before we are able to push any strategies, we will need to receive an authorisation from the Sushiswap DAO to approve our strategies to be pushed onto Bentobox. There is currently a proposal live on Sushiswap forum that asks for SUSHI holders help.
We are also asking SPELL holders for approval on increasing interest rates using this proposal, to make sure to be ready to swiftly increase the interest as soon as SUSHI holders and the Bentobox multisig will allow us to do so.
Once this happens, and if this proposal were to pass, the protocol will increase the interest rates on those 2 cauldrons, to incentivise users to close their positions as soon as possible, allowing the protocol to be as aggressive as needed to flush users out.
The interest rate increase would be applied using similar strategies to the one described in the following RFC.
If you have a position open in any of these two cauldrons, we highly recommend closing it at your earliest convenience, to avoid having funds at risk.
Normal Repay: abracadabra.money
Deleverage: abracadabra.money
Given the time sensitive situation that we are in, we are aiming to push the vote on Saturday November 26th at 15:30 EST, for SPELL holders to vote upon it for 24 hours.
The AIP has passed with absolute majority, you can find the voted Snapshot here.