Yesterday we removed $2. 5M from XAI/USDC Uniswap pool and added it to XAI/FRAXBP Curve pool.
04 Jan 2023, 14:48
Yesterday we removed $2.5M from XAI/USDC Uniswap pool and added it to XAI/FRAXBP Curve pool. The move follows an upgrade to the protocol's liquidation engine to support liquidations through XAI/FRAXBP curve (*see example of liquidation transaction under references*).
With more liquidity in the Curve pool at the peg, XAI’s peg grows stronger, and as such the DAO can extend credit lines to stable assets as well as volatile ones.
Here is a break down of the DAO’s XAI-controlled liquidity at the moment:
- $2.5M in the XAI/FRAXBP Curve pool. LP tokens are locked in Convex.
- $300K in the XAI/FRAXBP Curve pool. LP tokens are locked in StakeDAO.
- $430K in the XAI/USDC Uniswap pool.
Increasing the Curve pool liquidity will decrease APR for current LPs. However, since the DAO is now farming CVX/CRV tokens, the DAO can feed some, or all, rewards back to the Curve pool. This is something we will consider doing in 2 weeks once we have had enough data to estimate the DAO’s earnings from LPing in the Curve pool.
References
- Adding/locking XAI/USDC
- Gnosis Safe controlling DAO’s XAI liquidity in Curve/Uniswap
- Liquidation transaction