I’m putting the suggestion out there too leave the borrowing rewards as they are (for now).
I feel like this would be beneficial if we voted in BALN as collateral. There for the borrowing rewards would be 50/50 and would incentivise investors to use their BALN for collateral.
I think these is a good short term strategy.
While thats sounds great, and I would rather someone knowledgable weigh in on that, but it sounds like the framework for that would be the hard part, and it wouldn’t be short term at all given the implementation.
There is no oracle for BALN, if we take the dex price, I just checked and 1million BALN can move it 30+%. I’m sure there are some time weighting strategies, but is it something you can just turn on?
How does retiring work, does it retire all bnUSD into ICX like before?
Can you choose to retire into BALN? Without a BALN oracle, how does the peg on bnUSD even work.
With such low liquidity is the reverse possible, collateral BALN > use bnUSD to buy BALN, which now impacts the price alot, which lets you borrow more, etc. This sounds cool because there may not be enough BALN to make the price fall, until you realise they are effectively leveraged 5x or something, and can maybe bankrupt the DAO if it does indeed fall.
Would be cool if all that was already solved though.
I would like to add BALN as a collateral type but yes we would need some controls in place. It wouldn’t be short term, it would be permanent, and we would limit the percentage of bnUSD that could be backed by BALN rather than ICX.
As for borrower rewards, I’m going to share a proposal about that and get more community feedback, but generally people seem pro-lowering the rewards.
I’m personally against lowering the borrowing rewards for now, for another reason. With OMM launching anytime, the current borrowing rewards will better incentivise people to bring their osICX over.
The more investors that take out loans the more origination fees going to the BALN holders.
Just my 2 cents anyway, will be an interesting to see how the community votes!
Baln as collateral is a way good for both short and long term. Agreed 100%.
There are a lot of feedback to lower the borrow reward , can check other post why and the reason behind.
Hope all this can help to drive Baln for Best ecosystem. ( Reward, trading etc)