Hi Frog Nation,
As we all know, the first UST Degenbox cauldron launched just a few days ago, and was deprecated very soon after its launch.
Unfortunately, the oracle used for the first Cauldron was suboptimal, and consequently, a new Cauldron was released merely days after the first. The oracle for something like this is no trivial thing, so I am super happy the team updated to the most accurate available option!
However, because the update happened so soon after the launch of the first Pool, rational actors were heavily penalized for being early adopters of the initial UST Pool and then migrating to the updated, newly-supported pool.
This proposal is to refund the Borrow fees charged to depositors in Pool 19 (deprecated UST Cauldron).
Rationale: The people who were early supporters of the UST Cauldron have now been heavily penalized merely because the team did not integrate the optimal Oracle in the first Cauldron. If the team had waited just a few days and launched the Cauldron with the optimal oracle option from the onset, these excessive fees would not have been incurred; however, because this did not happen, the biggest supporters of this project who deposited into the initial UST Cauldron - which was deprecated merely days later - have incurred severe borrow fees to Deposit, Withdraw, and then Deposit again into the supported Cauldron (not to mention slippage / gas fees…).
This is a penalty for
- merely being an early supporter of the strategy,
- acting in line with the team’s recommendations and adopting the more accurate / proper oracle
Because a penalty was incurred for these two actions - which are both entirely rational & aligned with the best interests of the protocol - I propose a refund of the Borrow fees incurred for the migration from UST Cauldron 1 (Pool 19) to UST Cauldron 2 (Pool 26).
Bonus points if an estimated amount of slippage can also be covered
Look forward to the discussion!