Collateral Reserve Contract and Schedule
Happy New Year!
We have an announcement about the schedule for updating the protocol.
In order to support rebalancing, we are going to update our Collateral Reserve Contract and New Minting Logic in a few days.
Even though updating Collateral Reserve Contract, it doesn’t mean that we rebalance immediately. For safety, we will rebalance when the FTM price is around 3 USD. At first, rebalanced collaterals will be only DAI, FTM as collateral. But it’ll include more collateral in near future, e.g. yvDAI, some LPs. If you would like to suggest something for the timing and collaterals, please use https://snapshot.org/#/coffinfinance.eth and discord community.
New redemption will start again after around 2 weeks of rebalancing. Now we control the timing, but know no one has perfect answers for such topics ( the timing, etc ) , so we will follow community decisions by snapshot.org.
Please read below articles as well.
As we made an announcement previously, The new minting & redeem are different from previous logic, so it’s challenging. We hope it’ll still help CoUSD peg.
In terms of New Minting Logic,
- Users are able to mint only when the CoUSD price is above a specific threshold. ( $ 1.0033333..) It’s similar logic with FRAX Finance. Because the marketing price is below 1 USD, it’s better for users to buy CoUSD on the market, rather than minting.
- The new minting mechanism uses new collateral ratios depending on current collateral ratio and current CoUSD price, CoUSD supply, etc. In the beginning, we use a specific collateral ratio for minting. e.g., 95%.
New redemption
- Users are able to redeem only when the CoUSD price is below a specific threshold. ( $0.9933333..). It’s similar logic with FRAX Finance. Because the marketing price is above 1 USD, it’s better for users to sell CoUSD on the market, rather than redemption.
- The new redeeming mechanism uses new collateral ratios depending on current collateral ratio and current CoUSD price, CoUSD supply, etc. And It may have safety adjustment value.
- Users might receive different collateral tokens by new redeem. ( e.g. DAI, yvDAI, etc. )
- New Redeem will have daily amount limitation by COFFIN and limitation by each address.
- We will make further announcements about the details before releasing.
There are new parameters. But users will be able to suggest adjusting parameters by snapshot voting.
Yours Sincerely,
Coffin Finance.
