Curve cUSD2Pool imbalance

In order to address the extreme imbalance in the curve Creditum pool(at the time of writing there is 772,472 DAI+USDC and 4,764,045 CUSD), the team proposes to raise interest rates on DAI and USDC.

Users have been profitably looping using these collaterals by taking the CUSD they receive and dumping it into the curve pool in exchange for DAI and/or USDC and then redepositing into Creditum to mint even more CUSD. The result has been the imbalancing of the pool and the loss of peg for CUSD. By raising borrow rates, this strategy will be less profitable and induce users to pay off their CUSD debt which should help to restore peg.

The team believes a modest interest rate increase should do the job but we can always revisit increasing rates even further if necessary. This interest rate increase will occur on all assets! The most important feature of a stablecoin is that it maintains its peg so we consider this vote of utmost importance. Please choose from the following interest rate increase options: