[Defrost #09] — Whether to create an H2O savings pool

Proposal Type: Defrost Vaults Proposer: Defrost Team Proposal: This is a proposal to vote on creating an H2O savings pool This is one of the proposals aiming to fix the H2O peg problem.

Right now, the biggest and only utility of H2O is to be used in the DefrostH2O3CRV-f on Curve to facilitate trading with other stablecoins and loop positions.

The launch of an H2O savings pool will introduce another important H2O utility, which is to earn a direct interest, without exposure to other assets. Please check how the savings pool works on the Defrost docs (https://docs.defrost.finance/mechanisms-and-functions/functions-1/deposit-h2o).

There was an earlier proposal passed by the Defrost community to use the protocol fees to accumulate ECD & VTX for future PTP incentives. Please find the details here. https://snapshot.org/#/defrostfinance.eth/proposal/0x880fd6ce8e6ff68ab4fd55e91443f028baf65f76351784f0acf2b674514691f7

In recent weeks, the market environment has changed greatly and the community feel that our main goal should not be to accumulate tokens from other protocols but to bring H2O back to peg.

Therefore, we propose to allocate 60% of the stability fees to the H2O savings pool, as opposed to using them to purchase other tokens. Users who deposit H2O into the H2O savings pool will automatically earn interest.

Options:

1. Yes, stop the ECD/VTX purchase and launch a savings pool.
2. Yes, Stop the ECD/VTX purchase, launch a savings pool, and move H2O/AVAX emissions along with what’s currently being attributed to purchasing ECD/VTX to provide 2 layers of rewards on the pool.
3. No, we prefer to keep things unchanged.