• AIP

  • [AIP-15] Raise the alETH debt cap and end alUSD-only rewards.

Voting now active on https://snapshot.org/#/alchemixstakers.eth/proposal/Qma37A1zw7rTsr9vEx2x7gc2hDJsbwjtyBpUc6EbYLxvsZ

It has been two weeks since the relaunch of alETH and the system is stable in its operation. No anomalies have been spotted since the contracts have gone live and the saddle alETH market is liquid and healthy.

With this in mind, the Alchemix team believes that it is time to raise the cap on alETH and that an increase in the cap from 2000 alETH to 3000 alETH is a prudent measure. The Alchemix team also asks for the discretion to increase the cap again by another 1000 alETH if we hit the limit and the system looks healthy.

As a part of the original alETH launch plan, we were also going to phase out the alUSD-only pool. Over the past month, new markets for alUSD have emerged on Sushi, Saddle, and mStable. It has also become a collateral and borrowable asset on Ruler. We have further integrations planned for alUSD after we have our price feed made by Chainlink. Therefore, we feel confident in its ability to maintain the peg without this rewards pool. The 0.5% of weekly rewards will be redistributed to the alETH LP pool, with the distribution being:

58% ETH/ALCX SLP
18% ALCX only
18% alUSD3CRV LP
6% alETH/ETH LP

The alUSD-only pool would remain indefinitely, but the ALCX rewards would be reduced to zero.

A "for" vote authorizes the following:
-increase the alETH debt cap by 1000 alETH
-give the Alchemix team discretion to raise it another 1000 alETH
-adjust farming weights to end the alUSD-only pool and give its allocation to the alETH-LP pool.

A vote "against" rejects this proposal.

    For. Although for simpletons like me, I like only having one place to go for alUSD interactions. As we get bigger and attract more simple people, I do think there's a case to be made for minimizing how many protocols users have to use to benefit from what Alchemix does. Not all are super users, and some may be willing to trade some upside for reduction of multiple protocol risk (saddle, etc). If this is a dumb comment then please let me know, but I thought I'd put it out there.