Description
Deposit caps across the board have been reduced for alETH and alUSD Mainnet vaults. In general:
- deposit caps for unproductive vaults (low yield) have been reduced below current deposits.
- deposit caps for full vaults have not changed
- deposit caps for productive vaults and vaults that need room for v1 migrations have been reduced to allow a small amount of capacity.
Current deposit caps can be viewed at https://app.alchemix.fi/vaults.
Context
Step 11 of AIP-101 is to re-evaluate all protocol parameters. There are multiple events upcoming that can and will affect the supply of alAssets (and therefore the liquidity the DAO must support), product demand, and overall health of Alchemix (both positively and negatively):
- alETH rebacking (expected before EOY)
- veALCX launch
- emissions tail reaches its floor value (only 2200 ALCX will be minted each week, every week, starting in March)
- Desire for DAO to expand L2 offerings
- Distributing OP grant and applying for ARB grant
The intent of reducing the deposit caps is to ensure the alAsset supply remains predictable until the DAO can evaluate emissions allocations, revenue distribution, AMO operations, deposit caps, and other parameters - and can establish the proper global parameters for Alchemix, with the above considerations in mind. This will be a primary bizdev focus of Q1.
This proposal is carried out retroactively to avoid a "front-running" situation of the vaults being filled up.
Voting
This proposal seeks retroactive approval to reduce the deposit caps on Mainnet, as well as similarly reduce deposit caps on Optimism, with the intent to re-evaluate in early Q1 once alETH is rebacked.
Voting is simple for/against/abstain.
