Lower the Rebalancing Threshold

As we continue to enhance the borrower experience, it would be a good opportunity to further tighten the peg of bnUSD. I propose we change the rebalancing threshold from 2.5% to 2%.

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At the moment do we have access to the ability to have the peg be asymetrical? I was thinking before that leaving more room on the bnUSD being too high side might be okay, but have thought of more benefits.

At the moment if bnUSD is too high, rebalancing quickly corrects it, however if bnUSD were allowed to stay say for example at 1.10 USD for longer, it might encourage more people to put some collateral in to take advantage of it. ‘Come mint some bnUSD its a free 10%’ or whatever it is. That exact number can be debated.

It would also reduce the chance of rebalancing in that direction liquiditating a borrower and when it did happen would give a larger benefit to borrower.

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Yep overall I agree with this for sure. Unfortunately we don’t have that control right now, but after this vote, I’d say we can instead focus on the mechanism itself, such as an asymmetrical peg

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I think we should definitely tighten the peg more especially that things seem stable now. As more utility for bnUSD and additional collateral types get added (maybe with the first BTP deployment) we’ll tighten it even more.
The asymmetrical peg is a great idea for sure, but would there be a way to make it flexible and automatically adjust based on predefined parameters (I am thinking along the lines of in response to repeated unidirectional triggers for instance it would automatically tighten or loosen the peg by 0.5%)

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I think the move to 2% is a good amount.

Seeing the effect of a .5% change could help decide further tightening decisions. With that in mind, is there a way to add stats on rebalancing to the stats page?

Good suggestion - will note it down

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