Abracadabra Proposes Interest Rate Hikes to Push V1 Users Toward V2 Migration
Abracadabra Proposes Interest Rate Hikes to Push V1 Users Toward V2 Migration
🔮 Abracadabra's migration strategy
Abracadabra has introduced a proposal to gradually increase borrowing rates on V1 cauldrons over 30-60 days as part of its transition to V2.
Key objectives:
- Stabilize the MIM stablecoin peg
- Consolidate liquidity before V2 launch
- Encourage users to migrate from V1 to V2
- Optimize protocol reserves and revenue
The RFC outlines the pace and structure of these rate increases, using higher borrowing costs as an economic incentive for migration. This approach aims to concentrate liquidity in preparation for the V2 deployment while maintaining protocol health during the transition period.
This RFC discusses pace, structure, and aggressiveness of interest rate increases for V1 cauldrons. The objective is to reach high borrowing rates within a 30-60 day period to: → Improve MIM peg stability. → Consolidate liquidity.
RFC: The Transitioning from V1 to V2 → Consolidate MIM liquidity ahead of V2 deployment. → Encourage migration with rising cauldron borrowing rates. → Optimize both reserves and revenue ahead of transition. forum.abracadabra.money/t/rfc-1-gradua…
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