Fully reopen ICX market after snapshot date

Proposal discussion WIP: OIP
#1

So OIP 1 disabled sICX borrowing and removed OMM rewards from borrowin, and OIP 2 increased sICX borrow to 120% fixed rate.

After the ICE network snapshot on December 29th, 2021 at ~4 AM UTC the ICX/sICX market needs to be fully reopened.

Since this is an obvious step forward it might be a good idea to check if anybody have thoughts about any adjustment on this market’s OMM rewards, or if it should be a 50:50 OMM reward distribution.

I think it should be 50:50. We also need to move fast with this to avoid loosing supply.

PS: I don’t have enough OMM to submit this proposal.

1 Like
#2

So reverting OIP 1 and OIP 2 mean

  • Enable sICX borrow (no one will be able to borrow sICX anymore)
  • Change sICX borrow rates to previous configuration (Interest rate model - Omm support)
  • Shift a portion of OMM rewards to sICX borrow (Supply:Borrow = 0.9: 0.1)

However, it seems like you are suggesting that Omm changes its OMM rewards of supply:borrow ratio to 0.5:0.5

I think this transition will help Omm generate more fee for the protocol that can be later used as bonds for the community P-rep, POL, etc.

However, in general ICX community will likely use ICX as collateral on Omm. Given that there will be a significantly more ICX supply than borrow amount, ICX suppliers will get less OMM rewards per ICX and ICX borrowers will get a lot more OMM rewards per ICX. This may not matter as much for ICX suppliers as the OMM rewards rates is somewhat already low for ICX suppliers, but something to note.

Given that airdrop is coming up soon, people may try to borrow ICX and short ICX on Omm, so it may be an interesting time to incentivize people to borrow ICX. It can be an interesting experiment for few weeks perhaps?

#3

Exactly, these new mechanics could allow Omm to incentivise usage without necessarily harming the token price.

Yeah, because of this reason sounds like supplying has already an inherent incentive. Also if there is more demand for borrowing ICX/sICX then ICX holders can benefit from higher interest rates.

#4

Agreed, plus we could also define a cutoff amount of supplied ICX to revert the supply borrow ratio back to 0,9:0.1. So if people start withdrawing their supply due to lesser rewards the protocol could react.

#5

Cheers for the post! Definitely look forward to seeing sICX borrowing opening back up :slight_smile:

I think it’s a good idea regarding changing of the rewards split to 50:50 as it’ll generate more fees for the protocol. I’m not sure how popular it’ll be with ICX suppliers but the APY there is already very low there so hopefully it shouldn’t be an issue. Could see how it goes and it can also be reverted back to 90:10 if needed