VIP-028 Reduce max interest and add repayment in USDN option for all depositors of USDT and USDC

Proposal ID
C6jQsnCDpgxXAdroSnhheqeq5ersGrqxyrwEqwJCD4Rj

This is part 1 of the plan proposed in the Vires Discussion piece.

Based on community feedback, we believe there is agreement that interest on bad debt subsumed by Sasha’s Wallet must be reduced. It allows more repayments to feed into the platform’s liquidity rather than simply paying the interest. This allows depositors in USDT/USDC to withdraw freely as quickly as possible. However, in doing this, we understand not all depositors believe in the team to make repayments. Therefore we propose that every depositor - no matter the size - get the option of a certain repayment and timeline by choosing to take USDN. The people who commit to the repayment will receive a 5% liquidation bonus on top of their deposits.

The timeline will remain the same - 365 days is the goal for full repayment of all depositors. However, vesting rules must be flexible depending on market conditions. Where high USDN demand exists, vesting amounts a day can improve; where low demand exists, vesting amounts will reduce. In reality, most small accounts at the proposed daily limit will be out in just a few weeks.

What we propose:

  • Reduce USDC and USDT Max APR to 2%
  • Add USDN vesting + 5% bonus option for all depositors
  • Apply a total daily limit for vesting of 100k USDN
  • Apply a daily account limit of 100 to 500 USDN per account depending on account size
  • Pause deposits on USDT and USDC markets, to stop looping

The community must understand that all these rules are flexible and depend on market conditions. The Vires DAO intends to pay back all users as quickly as physically possible, to make all users whole. This will remain the singular priority of the DAO until the goal is reached.

In further proposals and through our discussions with the community, we will add more options and flexibility, like: introducing dynamic adaptive vesting limits, vesting through SURF tokens, creating new markets, and unlocking LP tokens.

Transaction Payload

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2 Likes

LP locker’s who support protocol will be punished.
Stop killing the crew!!! Team is always fuck supporters.
LP unlock must be at the same time.

2 Likes

I do agree on this as a first step ahead. Finally the idea to allow to reconvert USDC/USDT deposits to USDN I proposed some months ago, may be available for everyone. I will be among the first to reconvert my USDC/USDT locked deposits to USDN.

Still there are many things to do. The principal one is to recover confidence and strength of USDN. And that depends on changes in SURF. I trust the team that they will come, so this is also a confidence vote. Ideally, SURF should be improved first, but I understand that the problem of USDT/USDC debt is very urgent.

Please, don’t dissapoint me :slight_smile:

2 Likes

Sorry but i dont understand why only 5% bonus, i mean; USDN is already 0.95$ and 5% is only the depegged price… now…

i think, as i say before that… ok we reduce APY… but process of usdn selling will be managed from VIRES team and Sasha, not by the community.

in this way vires users will receive usdc or usdt without risk of depegging caused by so much selling pressure on the market.

so i’ll vote against.

2 Likes

Just deposit the USDN and wait for its recovering.

Vires has a big liquidity problem. It is amazing that, instead of accepting the solution, some people still are thinking in doing money.

Everyone just wants to withdraw at this point. The team is acknowledging this fact. 2% APY is fine as long as Sasha actually makes repayments so people can withdraw. Since he will be paying essentially no interest, he will have no excuse not to pay. The proposal should help everyone eventually get out safely.

3 Likes
  1. The 100k USDN vesting, is first-come-first-served and it’s absolutely not acceptable, will be same as now, only bots able to withdraw. Should be automatic and random if more than 100k required a day.
  2. Converting real usd backed stablecoin to algo stablecoin with br 0.1 to year (+bear market) is not an option, should be possible to convert fractions, like you want to take your 100 usdn share, convert 95 (according to the real cost of usdn, thanks god you have oracles right?) usdc/t only, not the whole deposit.
  3. In further proposals and through our discussions with the community, we will add more options and flexibility, like: introducing dynamic adaptive vesting limits, vesting through SURF tokens, creating new markets, and unlocking LP tokens.`
    The problem: When you append dynamic adaptive vesting limits only god knows what will be the minimum to withdraw daily and how much time funds will be vested, we need fixed minimum that will not change during our vesting period.
  4. No info about Sasha’s repayments, we should know will he continue to pay the debt when usdn stabilizes or it will be the only method to return deposit?
1 Like

I agree, if the apy is changed then the deal terms under which people locked are being changed. Voiding the deal.

Just unlock everyone as soon as you guys implement the 2%.

3 Likes

I would like to see partial vesting. I.e. don’t convert a whole clip to usdn. Since it’s only possible to withdraw 100 usdn/day (sub 50k balance) I suggest to only convert the usdn that can be withdrawn. Not the entire usdc balance.

1 Like

why can’t we use usdt/usdc as collateral? it is ironic …

1 Like

1 $USDT = 0.80 $USDN … soon 0.50

1 Like

Hands up this is a holdup. Again punishment for USDT/C suppliers, we are not to blame. The culprits are those who supplied their stupid USDN currency, they exchanged millions here at 1:1 for USDT/C, because that is how the team programmed the system, although they have been asked ad nauseam for an oracle for that currency that they well know is always depeg.
Also the team, who did not want to liquidate those abandoned accounts as soon as possible to avoid increasing the debt.
Sasha kept the debt and the thousands of gvires, but he did not change usdn to usdt/c to pay the debt, so as not to depeg the currency. What a scam.

3 Likes

The debt in usdc/t is the Sasha’s problem. But now you can convert this debt in USDN (0.9$, 0.7$, 0.001$ price) and it will be your problem. Or you can stay with 2% apy = for free for Sasha for years.

6 Likes

Vires liquidation mechanism has failed the community and its objective.

Margin calls and collateral ratios have already been invented but vires wants to reinvent something that already exists because of not implementing oracle for stablecoins.

Real Low health accounts (not by accounting their collateral at fictitious values) should carry the burden of their irresponsible actions, not the lenders, lenders should be made whole asap.

Low health borrowers to return funds or be liquidated.

Stop helping borrowers by once again lowering the cost of their irresponsible actions

6 Likes

How if the 365 days goal going to happen?

The 100K +5% USDN daily vesting is at most 36.5M a year if the USDN value remains at 0.95

Is Sasha going to take an outside loan or investors money to repay it’s debt?

What happens to locked deposits? Are they going to be unlocked?

Until Vires starts using the real-time USDN value instead of a locked value of $1 the attack vector to de-peg USDN will remain, as there’s a misalignment of incentives. All of these proposals are theater, until they address that core problem.

3 Likes

I invested in mainly USDC for a specific reason. Why am I being stuck with a choice of USDN which is much more unstable or 2% on USDC. Change the rules halfway through the game, ok then. What a joke.

2 Likes

And the locked Vires APR varies widely. A moving target. I was considering buying up a large amount but the APR and price of Vires does not seem to follow any kind of stable trajectory worth investing in.

2 Likes

the first - the team of this project - sneezes on everyone except Sasha.

I wrote it before - and I’m writing it again:

  1. destroy Sasha’s deposit - and “wish” him success, only without us.
  2. Sasha has a controlling stake in the voting board. the value of the protocol is now equal to 0. All your “votes” are nothing.
  3. All problems are caused by Sasha - but the problem is solved - by users and small investors.
  4. Sasha is currently losing 100t per day, and has about 15-20t of daily income due to the distribution of packet ownership of the protocol.
    WHY reduce the % of earnings from 40 to 2%?
    so that Sasha lost only 5 thousand dollars, but earned 15 thousand dollars due to the protocol.
    Who will pay for all this? I won’t even write an answer… I don’t think there are so many people here who are so stupid that they don’t even understand this.

Originally, his indebtedness was supposed to be liquidated for 100 days?
then in 200 days?
now 2% - will lead to the fact that it is 1-2 years and more will have to be paid.

I am very glad that I managed to bring out almost everything that was here.
I was cheated with the protocol - since 4 months ago, I had a protocol cost of 5t+ dollars and received daily 20-30 dollars.

Right now, the cost has fallen 5-6 times the protocol, as well as daily earnings. and this is just the beginning!!! since it will fall several times due to the decrease in %.

I was cheated here. The team behaves like a corrupt body that was bought.

  1. why is information on debt and daily loss blocked for all users? Why can’t we see this information? why don’t we see deposit and commitment?

WE were deceived, and are taken for fools. Phew!

Don’t be stupid - open your eyes (I’m talking to you, investors).

3 Likes

Did anyone notice that supply of USDT and USDC has been paused? That’s the only way for the protocol to ease the liquidity squeeze problem… and the team paused it?!? Just liquidate the accounts that have negative health, pay investors in USDN from the liquidation and let them move on… It looks like we won’t reach the quorum - people are not fools and they know how to avoid this Proposal to pass. Do not vote.

2 Likes