Nov 19, 2021
Settings Change, and Prevention of the poor arbitrage loop secured for now. (Updated on 19th of Nov 14:00 UTC)
We know it has been rough, we’re up against challenges, which is critical, and we, the developers and founders, are still working to strengthen the protocol and safeguard its supporters.
The current price had been decreasing NOT as a result of a bug, exploit, or rug.
The intrinsic risk is originally implemented in similar protocols, known as a death spiral.
We have circuit breakers in place to prevent bad arbitration. Though it seems they weren’t working well enough for our needs.
We’re facing with a similar issue that IRON faced.
Please know that we are doing everything we can to protect the protocol and our community members.
To adjust some flexibility settings, we had to transfer ownership of a contract. It’s not about timelock for collateral. (Collateral still has a Timelock.)
By doing so, we were able to move smoothly and fix the parameters. As a result, we’ve established a strategy to address the challenges and tokenomics. some of which are
- Increase transfer tax ratio to a fixed 5% when below PEG temporarily to prevent current maleficent arbitration efforts.
- Or, increase transfer base ratio. Currently it’s 0.05% minimum, but it’s too small for bad arbitrage players. We feel it’s better to increase the ratio when we are below PEG. (Updated on the 19th of November, 2021)
- Changing the redemption delay timing.
- Changing the rate of our minting fee.
- Changing the redemption fee entirely.
With your everlasting supporting, and inspiration asawlays,
Thank you,
The Coffin Finance Team
*Document updated on the 21st of November, 2021,UTC 14:00.*
