Request for post mortem


Today the following happened:

  • USDf fell below pegg
  • Collateral ratio was ~0.62
  • Enourmous amounts of GAIA was minted (~80B)
  • Liquidity dropped to non-existant levels
  • GAIA price dropped to non-existant levels, causing even further price decrease due to higher GAIA redeems
  • Devs had to manually update the MIN_RESERVE_RATIO
  • Devs later on updated the newRatio_ as that was forgotten
  • USDf seems not to get to peg with CR ~0.96
  • USDC reserve is now at 1.7M, initially coming from 3.2M before the CR was updated. >7M before price fell below pegg

Is there an action plan foreseen for these cases? The burn rate of USDf is slowing down due to fear of there not being enough USDC after redeeming. Is it possible to have the UI show the amount of USDC-to-be-redeemed in pending redeems? Can a contract call be foreseen to get the sum of the burned supplies per address?

Looking forward to start the feedback and improvements.



3 hours later and the USDC reserve has been completely drained. This was expected when putting the CR at 0.95 when the USDF price was only 0.8$.

Some users have their burned USDF now lost in limbo, as there is insufficient collateral for their redeem. This could have been avoided by:

  • UI functionality that disables redeems if no more collateral would be available
  • A contract variable with the total, current burned synth. Then a contract modifier/check in the ‘withdraw’ function could verify whether the current burned synth + what the user wants to burn, doesn’t exceed the balance of the collateral (times the CR).

This would have been a relative easy implementation, with a limited extra gas cost. In turn, you would have a protocol that guarantees the collateral for minted tokens.