Silo Finance (SILO) news

Silo Finance

Introduction Currently $XAI price is hard-coded to $1 in the Silo Protocol. In other words, 1XAI==$1 at all times. We use Chainlink ETH/USD to price XAI. The reason behind this logic is that it would create arbitrage opportunities. Please read more here. With the recent USDC Volatility, the assumption fell short of reality.  The normal DeFi state for the Silo protocol is:   The current USDC price is 1$ in DEXs, CEXs → USDC can be bought or redeemed for 1$. XAI price is equal to the USDC price i...

Proposal to peg $XAI to USDC market price

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We've posted a proposal to peg XAI to USDC (1XAI=1USDC) by changing XAI’s price feed to Chainlink ETH/USDC.

TL;DR
Following the recent USDC volatility, we believe keeping the price of XAI fixed to 1$ has risks of temporary price manipulations in the case of USDC de-pegging to below 85c - and never returning to peg. However, fixing the price of 1XAI=1USDC removes risks and thereby the protocol functions as expected.

https://gov.silo.finance/t/proposal-to-peg-xai-to-usdc-market-price/346

Please share your feedback directly in the governance forum or #proposal-discussion. 

Reminder of our governance process: 
- Governance proposal for at least 1 day
- If there is clear consensus, we move to on-chain proposal for execution
- If consensus is not clear, we spin a snapshot proposal for temperature check.

For new token holders, if you wish to participate in governance, please delegate your voting power to self or others delegates. Here is how. 
https://silopedia.silo.finance/governance/delegate-your-voting-power

We've posted a proposal to peg XAI to USDC (1XAI=1USDC) by changing XAI's price feed to Chainlink ETH/USDC.