Please vote on SIP-51: Change XAI price to USDC. Proposal. The proposal changes the way we value XAI in our market.
11 Apr 2023, 14:26
Please vote on SIP-51: Change XAI price to USDC
Proposal
The proposal changes the way we value XAI in our market.
- Current: XAI is hard-coded in the protocol to USD.
1XAI==1USD at all times
- Proposed change: XAI will use ETH/USDC Chainlink price feed.
1XAI==1USDC at all times.
Rational
XAI is pegged to USDC on the market because it is paired with USDC on Curve and Uniswap pools. However, XAI is hard-coded to USD in our markets. That creates a systemic risk in the event USDC (and XAI consequently) de-pegs below $0.8 on the market - while XAI maintains $1 in our markets - creating opportunities to inflate collateral value and take larger loans than the system should allow.
By pegging XAI to USDC in all our markets, we remove that systemic risk such that XAI's value fluctuates as USDC does, eliminating any opportunity to game the system.
References
Please check the following governance proposal: