Relaunch of USDf
A few weeks ago, USDf V1 launched and hit a death spiral due to insufficient guardrails and poor initial design choices.
Specifically, the guardrails that led to the death spiral include:
- not setting a minimum collateral ratio
- updating the collateral ratio by 0.5% every hour
- incentivization of a USDf-Gaia pool
In the relaunch of USDf, these are all fixed. In the V2,
- the minimum collateral ratio is initially set to 99%, which the ability by our seigniorage governor alpha to vote and make changes to this floor
- the collateral ratio step size is now 0.1%, and is also adjustable by governance
- USDC-Gaia is now incentivized instead of USDf-Gaia, which will provide better price support
The new USDf farming goes live on ethereum block 12341940.
It is important that this relaunch is not taken lightly. All users from V1 who were impacted by the change in CR to 95% have been made whole. For users who still have Gaia V1, there is a migration tool on etherscan to help users receive Gaia V2 at a 500:1 ratio. This ratio was chosen as it represents a sizeable amount of Gaia V2, without over-diluting the supply from day 1. It is also a sufficiently meaningful amount of Gaia V2.
Lastly, it is important to note that the Proxy Admin which owns USDx, CNYx and will also own Gaia & USDf is now owned by the seigniorage governor alpha + timelock.
TX: https://etherscan.io/tx/0x4bb766341046da6aa40dabbb93db436f5dbc8a6c8679ced555c8df35072609bd
What this means is that with the launch of USDf and Gaia, the admin keys to the DP contracts sits with the on-chain governance system. Any user who has over 1% of SHARE tokens can make proposals and vote and adjust quorum. This includes managing the treasury of USDf as well as implementing future protocol upgrades.
How to migrate Gaia V1
1: Set your allowance on Gaia for the GaiaMigration contract
https://etherscan.io/token/0x4B9E5fe882b2fbB3E098c9A25a8Ce66135Ed2be4#writeProxyContract
Approve Gaia Migration contract (0x28D0E0481026E5782758f6e02DC4D6d550C1c73B) to spend your Gaia V1 balance followed by 10 ^ 9 0's.
2: Call migrate with the input Gaia V1 balance
https://etherscan.io/address/0x28d0e0481026e5782758f6e02dc4d6d550c1c73b#writeContract
The input should be your Gaia V1 balance followed by 10 ^ 9 0's.
