This proposal, if approved, will:
- borrow
100,000 DOT as the Treasury
- deposit
100,000 DOT into MM to receive aDOT
- launch aDOT in Omnipool
- stop DOT GIGAHydration farm
- launch aDOT GIGAHydration farm
- reduce the max LTV of DOT e-mode
90% -> 85%
- add an illiquidity coefficient of
0.991 to the vDOT "fair value" peg for the GIGADOT pool
The illiquidity coefficient reduces the peg price of the pool by a fixed %, opening up an arbitrage opportunity vs vDOT "fair value" even when the pool is more balanced. This incentivises arbitragers to swap DOT for vDOT and unstake it on Bifrost (waiting 28 days) - without waiting for the pool to already be heavily imbalanced. The value of the illiquidity coefficient can be configured by governance as circumstances change - e.g. if the unstake time is reduced, or staking rewards are reduced.
The combination of these changes should restore conditions of the GIGADOT pool so that we can once again enable full functionality (including vDOT swaps through GDOT) - existing restrictions can be lifted after a review and confirmation of this.