xBond / USDx RFC 1

After further talks with community members, it seems xBond, while initially serving an interesting purpose, ultimately is just delaying rewards for most users while not providing tangible stability to the ecosystem.

This is because it receives a lion’s share of reards (50% currently) while LPs, who put real capital on the line in the form of USDC, receive only 35%. Obviously when enough rewards are minted and sold, there is far more rewards being generated than demand.

Here is a snapshot vote to pass a proposal that:

1: deprecates xBond and allows xBond users to do a withdrawal of USDx at a pro-rata ratio of the xBond pool

2: gives 85% of rewards to LPs and 15% to staked SHARE holders

3: re-enables LPs to get debased

This system is simpler than the old and will be basically a more fair and just AMPL rebase system with again YFI cash flow for share holders.

The reason it is more fair is that in AMPL, every token holder gets positive rebases but in this new system, only value stakeholders like LPs and Staked Share gets rewards.

Vote: Snapshot

4 Likes

Great idea Robert i believe this is the only way to move forward. xBOND is a failed experiment look at ESD, DSD, and our version. It centralizes all the USD and the debase mechanism can’t stablize peg. The thing that attracted me to DP over the others is it was building on Ample in the sense you could invest in the underlining protocol with Share and scale through multicoin assets but also the reward distributions made it into the hands of those who took the most risk. Great solution and will brig DP back to its former glory!!! This is the way!!!

2 Likes

I agree with OHM - current system is complicated, is stuck in the mud and needs remedial action
Better = simple
Better = more dynamic responsiveness to supply / demand market forces so rebase mechanism can balance (Locked USDx in xBOND is a heavy drag on everything)
Better = having USDx protocol working well before adding other synths (which we surely want in the mid to long term)
Better = strong incentives to build the system (there is obviously intense competition for capital in the crypto universe atm and that will only increase over time)

Proposal checks the boxes in my view.
Community, let’s rip off the bandaid.
btw … its likely gonna hurt me, and I know it will hurt others. I bought most of my USDx just below $1. I went into xBOND with faith that it would protect my capital. Now it looks like significant losses on my 15k xBOND. Hopefully we can make it back.

1 Like

How do you plan to realize it? Does xBond users will be automatically forced from xBond to USDx or they will have their time, when to do it?

xBond would haven been fine if the rewards were lower so not everyone jumped in, and limit was not set to 0.99, this was the real trigger for the death spiral. LP’s should have had the highest reward all the time. Glad you finally get this…

The second reason everything fails, is the continuously flow of changes to ‘fix’ things. Trust will leave then…easy

this will be the last change before keys are handed over

Good job, Robert!

Keep doing the great work - still way too early for DP.

Once we roll out some changes here and there, huge progress will be made!

Thanks Dev team for sticking with this.