[Proposal] Migrating the 17 Lowest Collateralized Positions to V2 Vaults

The strength and stability of our ecosystem depend on the trust and utility of our stablecoin, R. As we prepare for CEX listings for R, and the launch of RAFT, the peg will become a primary driver behind the protocol’s growth.

Objective

To restore the peg of R, we need to address a few outstanding positions generated through the one-time fee vaults. Our aim is to encourage users with existing and risky v1 positions to close them and migrate their collateral to the new v2 vaults to generate R.

Action Required

We invite all 17 users listed in the table below (currently representing the lowest collateralized positions up to a HF of 1.27) to close their outstanding positions and migrate their collateral towards the interest-based v2 vaults by Monday 2 October at 00:00 UTC. Any of these positions that remain outstanding after this deadline will be redeemed. To ensure fairness and minimize disruption, users will be compensated for any fees incurred in the process of generating R.

From the table, it is evident that only a couple of addresses represent the majority of the R amount set for redemption.

Benefits and Call to Action

By migrating or redeeming these positions, the R peg will restore to $1. This is not just a short-term fix but a stepping stone towards a promising future for the Raft ecosystem.

We have recently launched the Peg Stability Module (PSM) which, once the peg is recovered, will keep it tight without need for further interventions. The usage of the R Savings Module, which has already gathered $ 8 mln TVL, will increase further as users will have more confidence in R as a stablecoin with a tight peg.

This sustainable path will open doors for more partnerships and integrations, solidifying our position in the DeFi space.

Your engagement in this decision is critical. We invite you to discuss, share your insights, concerns, and preferences in the comments below.

4 Likes

Seems to make the most sense as users continue to realize the solid yield generated from the R savings rate and deposits steadily increase. We would definitely to appease the larger users and make sure that they understand the reasoning behind the shift. Overall, from a protocol design POV, it makes total sense to shift to the interest rate vaults for long term sustainability as a protocol.

Looking forward to the shift and also rewarding the loyal users in the upcoming token distro.

1 Like

Currently the only two material positions to redeem are the two $1.55M and $9.92M debt positions opened by the 0x1309c…a352 and 0xccfa0…6389 addresses. These addresses are short on $11.47m R which represents 55% of the total R supply.

Very conflicted on this one. It is clear that the Raft team is determined to restore the peg by redeeming the two large short positions. So if this is going to happen one way or another I prefer this proposal over the previous one that was forcing all V1 vaults to migrate, since i am not in the 17 lowest. The HF of 1.27 cut-off does feel a bit arbitrary.

I think this should be decided by RAFT holders’ vote to ensure credibility asap. Forced migration seems undemocratic.

1 Like

I support this proposal, as this is aimed at long term growth of the protocol.
Also, I consider this similar to the likes of AAVE responding to Michael Egorov’s debt.
However, I suggest to create necessary deleveraging and migration tooling for smooth transition of users.

1 Like

The largest positions in this proposal have already migrated to v2 and as such going forward with this proposal is no longer necessary.

I propose to leave the rest of the migration process up to the future veRAFT holders.

2 Likes