As we all know, BabelFish has paused the exchange from zUSD into xUSD and that affects not only ZeroProtocol but also Sovryn stakers.
I proposed we add a second option for ZeroProtocol loan takers to exchange their new zUSD into rBTC. BabelFish can continue to be an option, AMM pool will only serve as a second way to get into rBTC when you hold zUSD either because you took a long, or you got zUSD some other way.
If BabelFish continues to pause the exchange from zUSD into xUSD, we risk taking the hit and by that, what I mean is that users who hold a lot of bitcoins may decide to leave and never come back. When you have lots of money, you don’t want to find issues without money because that could signal something much worse could be at play.
The rBTC/DoC pool is working with very little liquidity since rBTC/zUSD is supposed to only be a redundancy method. It doesn’t need mountains of liquidity what DoC is having zUSD could work with the same amount.
We stakers benefit from Zero users taking loans because of that 0.5% fee and we the stakers can continue to benefit from the rBTC/zUSD pool because that trading activity will create even more fees for us. If people want to take loans and open more loans that is their business we are here to provide a service not be financial advisors.
If the community decides to ignore such a white elephant we risk those Bitcoiners never coming back, especially if they open a line of credit and pay the 0.5% for nothing because they realize they can’t do jack sh!t with it. You could still use the redeem option but I am pretty sure that will come at a premium and that premium could defeat the advantage that a zero interest offers, and if that premium goes higher and higher the 0% interest loan narrative could be seen as misinformation or worst.
I explain to my friend what is going on and his first answer was it looks like your protocol is sabotaging itself for some reason because instead of building the protocol they are trying to stop something that is growing.
I am not proposing the end of the xUSD conversion I am proposing we add a direct way to make use of the Sovryn loan.
You could also add support for DLLR but do that once it becomes available as a third option to use your loan, don’t chuck innovation for something that is not ready.
I think creating a new rBTC/zUSD will only take a few hours and it is just a matter of liquidity I think it will be much faster than creating DLLR.
Please share your opinion, and if possible signal your support if you would like to see an AMM pool for rBTC/zUSD, the other pools can remind the same.