IIP-20: ETH2x-FLI Cap Increase #1 and Rebalancing Liquidity Pool Switched to Sushiswap

Governance Proposal
1

IIP: 20
Title: ETH2x-FLI Cap Increase #1 and Rebalancing Liquidity Pool Switched to Sushiswap
Status: Proposed
Author: Punia @puniaviision
Created: March 23, 2021

Simple Summary

Raise the supply cap of the ETH2x-FLI from 50,000 units to 100,000 units and switch the DEX that the ETH2x-FLI from Uniswap to Sushiswap.

Abstract

Adjust the following parameters on the ETH2x-FLI:

  1. Raise the supply cap to 100,000 units.
  2. Switch source for rebalancing liquidity from ETH:USDC pool on Uniswap to the ETH:USDC pool on Sushiswap.

Motivation

For the initial launch, the ETH2x-FLI has a guarded roll-out to ensure stability with a more risky leverage type product. The initial supply cap was at 50,000 units. We’ve hit that supply cap and found the system to be behaving as expected and are ready to increase it to 100,000.

Initially, Uniswap was chosen as the pool from which the ETH2x-FLI would rebalance from because of its high ETH:USDC liquidity. Liquidity conditions have changed and Sushiswap has better liquidity for an ETH:USDC pool. Given the new conditions, we should leverage the pools on top of SushiSwap instead.

FOR

  • Increase the supply cap to 100k and change the rebalancing liquidity to Sushiswap.

AGAINST

  • Do not increase the supply cap to 100k and change the rebalancing liquidity to Sushiswap.
IIP-20
  • FOR
  • AGAINST

0 voters

Copyright

Copyright and related rights waived via CC0.

2

Looks good to me, I don’t have my head into all the technicalities of the product’s behaviour yet, but it’s clear it’s stable and people want to use it.

I’m hoping that the new code will allow for easy switches between v2 Uniswap and sushiswap liquidity.

1 Like
4

A point of clarification: this proposal does not affect how users buy the FLI.
Remember there are two rebalancing mechanisms with FLI:

  1. Rebalance the collateral ratio in the Set
  2. Rebalance the net asset value of the Set against the ETH/FLI Uniswap pool.

This proposal addresses the first case. It does not have any impact on the second case. Typical users of the FLI will perceive no changes (i.e. they will still buy through Uniswap).

2 Likes
6

For. And looking forward to future active management of factors such as rebalancing.