I wanted to bring to your attention a crucial decision that we need to make. It is about termination of BUSD on our bridge and aggregator.
As some of you may already know, Binance has encouraged users to convert their BUSD holdings to other stablecoins by February 2024. This decision was made following Paxos, the issuer of BUSD, ending its relationship with Binance after receiving a Wells Notice from the SEC.
In light of these changes, I believe it’s essential for us to consider pausing BUSD deposits and, subsequently, removing it from the BabelFish Aggregator. The presence of BUSD in the aggregator has direct implications for our Balancing Curves, making it necessary to readjust Target Weights of other aggregated stablecoins.
Currently, the target weight for BUSD is set at 5%, and we need to redistribute this weight among other aggregated stablecoins. Here’s a proposal for the new target weights:
Native Rootstock Stablecoins:
- ZUSD: 49%
- DOC: 0.5%
- RDOC: 0.5%
Stablecoin Bridged and Used in Rootstock Ecosystem:
- rUSDT: 5%
BNB Smart Chain Aggregated Stablecoins:
- USDTbs: 15%
- DAIbs: 7.5% (increased by 2.5%)
- USDCbs: 7.5% (increased by 2.5%)
Ethereum Aggregated Stablecoins:
- USDTes: 5%
- DAIes: 5%
- USDCes: 5%
Maybe we should consider the possibility of introducing another stablecoin in place of BUSD? Or just focus on increasing USDT alocations? We could increase USDTbs and USDTes by 2.5% each.
I’d love to hear your thoughts and feedback on this matter.