Hey guys! I have a proposal regarding the current situation, specifically regarding the withdrawal problems.
I see that part of the problem is that people are trying to withdraw their money (because of panic) but they can’t, which increases the panic level even higher. Also, people who can automate the withdrawal process using scripts get all the fresh liquidity, since the transaction commission is pretty cheap. As a result, people who really need to withdraw cant get the money back.
What if we add a request-based withdrawal procedure? First, a person who wants to withdraw places a request to withdraw a certain amount (a person should have that amount supplied, obviously). The system approximates when the liquidity will be accumulated to fulfill the withdrawal request based on current market conditions, states that this is an approximation only, and ask the user to agree with the withdrawal terms. If the person submits the request, he agrees to take the money as soon as the liquidity is accumulated to pay for the request. If the person won’t perform a withdrawal in N days (5 days, for instance) after the liquidity accumulated he will pay a penalty (10% of a requested sum, treated as a profit of the system, paid to VIRES lockers) and the remaining accumulated liquidity releases to the market. Since the request is registered in the system we can put all the fresh liquidity in reserve for people who requested the withdrawal, proportionally the requested amount. And since there is a penalty, people won’t constantly have a withdrawal request just in case. There should be no ability to cancel the request, otherwise, the cancellation should also be carefully handled which adds complexity.
That regulated withdrawal procedure in theory should calm down the panic and stop people from withdrawing the money when they don’t need it. Maybe that kind of procedure not always needed, so it may be enabled based on the current borrow/supply ration or based on some other metric.