Proposal: Gradually deprecate BUSD market

1

Summary

BUSD: Proposal to gradually deprecate the BUSD market on Strike protocol. As an initial step in the BUSD deprecation plan, I recommend:

  • Freezing new supply and borrow by reducing supply and borrow caps to 0.
  • Set STRK emission rate to 0.

BUSD

Given the ongoing deprecation of BUSD by Paxos leading to increasing risk due to reduced liquidity, we recommend gradually winding down the BUSD market on Strike.

Resources:

This proposal aims to initiate the deprecation of BUSD from the Strike market. If the community decides to deprecate BUSD, I proposes a phased plan comprising the following actions:

  • Limit exposure to BUSD on Strike
  • Freeze new supply and borrow
  • Stop STRK reward emission
  • Encourage repay by gradually reducing the Collateral Factors

Following each update, we should continue to monitor the market and the impact of the parameter updates on usage. Based on the observed effects and future market conditions, we can continue to adjusting other factors of the market.

2

Deposits and withdrawals of BUSD (ERC-20) tokens via Ethereum network will continue to be supported until further notice.

I say do nothing until there is further notice from Binance on ERC-20 BUSD.

3

While the delisting of BUSD from Binance market is predictable, we will be too late if we take the action after delisting. Our approach should be gradual delisting too and this proposal says that.