Allow foundation to swap between whitelisted collateral

Governance proposals (discussed) Closed
1

Title: SIP-X: Allow foundation to swap between whitelisted collateral

Author(s): Beinahruga

Created: 12/29/22

Labels: # Swapping between whitelisted collateral

Simple Summary

let the foundation be able to swap between allowed collateral with out a SIP

Abstract

to optimize the yield on the collateral, make it easier to move around the market.
example if we have a lot of usdc and the community feels like there is opportunity on a frax yield
i dont like that we would need a SIP to change that usdc to frax

Motivation

i like feel like this is a optimization on the voting to use our funds.
example if we have a lot of usdc and the community feels like there is opportunity on a frax yield. I dont like that we would need a SIP to change that usdc to frax with 1 SIP then another SIP to deploy the funds

1 Like
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I like the direction of the proposal. But this gives too much power to the Foundation which is against decentralization. We certainly need a better approach to how the funds can be balanced to optimize yield for USDs holders.

1 Like
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A couple things that will allow this proposal to go further in discussion and the governance process.

  1. More clearly define parameters that the Foundation would follow to swap collateral.
  2. Included necessary technical specifications of collateral strategy smart contracts.
  3. Decision parameters for when swapping collateral and changing strategies is allowed and who exactly makes the decision.
  4. Include clear voting criteria.

If the proposal can become more complete and actionable than it can more clearly work through the governance process.

1 Like
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Should we sunset this proposal due to lack of details? @Sperax

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Since incenption, decisions decisions prohibit the ability for the Sperax team to subjectively transfer or trade USDs collateral. When the system is designed this way, users have more confidence in the system where their wealth is stored.

This is an idea to continue discussion around. Let’s start another channel where we can have longer form, formal discussion around such topics. @Sperax