Discussion; ibXXX Peg Maintenance

Hey,

I get that you might be frustrated because you got funds that you can’t exit right now without high slippage but you’re only option right now is likely to wait it out until the steps below are completed.

Neither of these suggestions is really longer-term in nature, where user actions help restore the peg or automated tasks help run profitable strategies that also support the peg. Ultimately that has to be the long-term goal because it’s much more sustainable.

However, as short-term steps, they could work for the protocol - but it requires treasury to constantly be playing an active role to carry on down that path continually. In the end, that’s not really a sustainable or efficient way to operate, is it?

Obviously, I agree with you that the priority in the short-term needs to be restoring the peg on Curve but where I’d differ is that there should also be a setup that helps users or automated tasks maintain the peg once it’s been restored this time. That can be done by;

  • Balancing the pools now with treasury funds
  • Amending the AMM so that it operates with the features listed here
  • Burning some of the ibXXX supply in Ethereum market on Iron Bank so that interest rates for borrows go up
  • Maintaining a consistent incentive strategy to farm (i.e. keep voting consistently for gauges whilst also trying to increase voting power)
  • Boost incentives by revising the way rKP3R incentives are allocated as suggested here - whilst also removing the option to vote for USDC pools

Outside of that new use cases will increase demand for ibXXX assets - for example the recent integration by Mover

The rest of the questions you asked are all answered in full across the other threads, including info that is embedded within them. But quick response is;

All ibXXX are overcollateralized. Keep3r treasury info is publically available. Buy-back of ibXXX to payback loans has to come from sXXX side, treasury has been doing that if you look at transaction history. Impact to TVL would be on Iron Bank not Keep3r since most of Keep3r’s TVL comes from vested token holders.

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