I would like to propose a vote on where we place our treasury buybacks in order to support the backing price. We don’t know when this down market will cease and using the treasury’s funds to support the backing price comes at a cost.
We have a few options available:
1. Continue as we’re doing already — make no change. Treasury continues bleeding off as traders continue to speculate on price.
2. Lower buybacks to above most liquidation prices and allow the market to do it’s thing. This relieves the treasury a fair amount and still allows people to buy into the spread below the backing price without fear of another liquidation cascading effect. This also allows people who haven’t leveraged to more confidently do so without as much fear of being liquidated.
3. End all treasury buybacks and let the market decide. This options keeps the treasury mostly intact but also likely liquidates a lot of people who aren’t immediately able to repay their loans (most of which will be at a loss) and will also likely trigger a cascading dump effect as people will sell their wMEMO to repay their loan.
4. I’m open to hearing others’ opinions on the matter, please comment.
I have a small amount of a leveraged position and the health of my loan is still well into the 50-percentile. That said, it seems like the developers would have access to Abracadabra’s data to set whereabout most liquidations would occur. From there we could determine where to best support the price and let the market have a wider spread on which to trade/speculate on before reaching our temporary floor price. The majority of leveraged users have their loaned MIM reinvested back into Wonderland or the Dani ecosystem (ICE, SPELL, and/or SUSHI) so it should be considered that if they are liquidated the whole lot falls with it. Also those leveraged positions are a contributing reason for why our treasury is at the size that it is.
- Make no change to the current buybacks.
- Lower buybacks to slightly above most liquidation prices.
- End all treasury buybacks and let the market decide.
- Other - Comment below.