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AlluoAlluoby0xfb7A51c6f6A5116Ac748C1aDF4D4682c3D50889E0xtuytuy.eth

[Emergency proposal] Reduce the protocol exposure to UST

Voting ended almost 4 years agoSucceeded

Today, the Alluo protocol is exposed to UST with the current positions:

  • 1,540,829.16 UST: funds brought back from Anchor, not earning anything, just UST held as liquidity for the Treasury (https://etherscan.io/token/0xa47c8bf37f92aBed4A126BDA807A7b7498661acD?a=0x1F020A4943EB57cd3b2213A66b355CB662Ea43C3)
  • 1,071,101.98 UST: Treasury funds invested in the UST / 3CRV pool and compounded on Convex (https://zapper.fi/account/0x1f020a4943eb57cd3b2213a66b355cb662ea43c3/protocols/ethereum/convex)
  • 534,299.60 UST: Protocol funds invested in the UST / 3CRV pool and compounded on Convex(https://zapper.fi/account/0xa248Ba96d72005114e6C941f299D315757877c0e/protocols/ethereum/convex)

In light of the current situation of the unpegging of UST, we are at risk of some loss. The Treasury still has enough liquidity in non-UST assets to satisfy all current customer's deposits, therefore the protocol is safe. However, this proposal is to decide on what should be our reaction to the unpegging if any.

The 3 proposed options would be:

  1. Do nothing: keep all 3 positions open and expect a long term re-pegging of UST
  2. Liquidate all 3 positions: no matter the loss, liquidate asap all 3 as soon as the vote is passed.
  3. Reduce exposure by 50% over the next week letting the multisig signers decide on the most oportune time.

Off-Chain Vote

Do nothing.
9.94K ALLUO9.9%
Liquidate all 3 positions asap.
0 ALLUO0%
Reduce by 50% over next week.
90.13K ALLUO90.1%
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Timeline

May 10, 2022Proposal created
May 10, 2022Proposal vote started
May 10, 2022Proposal vote ended
Oct 26, 2023Proposal updated