QIP203: Promote Repayments on Unprofitable Stable Vaults

Promote debt holders on the following vaults to repay their MAI loans.

• Stake DAO USD Avalanche
• Stake DAO USD Polygon
• camDAI Polygon
• mooAaveDAI Optimism

Context on these Stable Vaults

MAI debt on these vaults is as follows:

• Stake DAO USD Avalanche: 10,101.50 MAI
• Stake DAO USD Polygon: 349,374.80 MAI
• camDAI Polygon: 196,172.52 MAI
• mooAaveDAI Optimism: 36,756.21 MAI

These vaults share a minimum collateral to debt ratio (min CDR) of 110%. Vaults whose min CDRs reach below this figure are eligible for liquidation.

The weighted average collateral to debt ratio of these vaults is as follows:

• Stake DAO USD Avalanche: 137.14%
• Stake DAO USD Polygon: 130.09%
• camDAI Polygon: 129.71%
• mooAaveDAI Optimism: 114.05%

Method for Promoting Repayments

Given the limited function of these earlier vault versions, this proposal seeks to increase the min CDRs of these vaults until all MAI debt is repaid.

Repayment fees will be reduced to 0%, as an inducement for repayments.

After one week from the approval of this proposal, a 1% daily increase in the min CDR vaults will begin. Under this schedule, it would take close to 30 days for the weighted average vault to reach the liquidation threshold.

Motivation

• Offboard unprofitable vaults: these vaults do not charge performance fees, as do gDAI vaults. They also do not meaningfully contribute to the overall collateralization of MAI.

• Improve MAI’s peg. These vaults hold almost 600k MAI debt. Repayment of these loans should result in buy pressure for MAI.

Quorum Standards

The option with the most votes will be adopted.

Options

• Approve proposal
• Reject proposal
• Abstain