ICE airdrop has been brought up frequently from the community. While it would be ideal if Omm protocol can guarantee 100% ICE airdrop for each ICX deposited, borrowed sICX balance receiving ICE will prevent this as it is not possible to distinguish sICX borrowed from Omm and other sICX.
Unfortunately, there isn’t much guidance on ICE at the moment and the snapshot date hasn’t been announced yet. It may have already happened, may be few weeks later, or few months later. Omm protocol should proactively try to prepare for this unknown ICE airdrop, and the best way to prepare this is to get as much of borrowed sICX back to the protocol.
In order to achieve this, we would like to propose a combination of following three proposals:
1.) Disable sICX borrow (no one will be able to borrow sICX anymore)
2.) Remove OMM rewards for sICX borrow (OMM rewards will be shifted to sICX supply)
3.) Increase sICX borrow rates to 120% fixed interest rates per year
1.) Disable sICX borrow (no one will be able to borrow sICX anymore): it stops people from borrowing more sICX. Once snapshot date is announced, people may take advantage of it and try to borrow sICX from Omm for ICE snapshot, so this change will prevent such outcome.
2.) Remove OMM rewards for sICX borrow (OMM rewards will be shifted to sICX supply): Many people borrow sICX right now to earn OMM. By turning off OMM rewards for sICX borrow, people are discouraged to keep sICX borrow balance
3.) Increase sICX borrow rates to 120% fixed interest rates: this is the most controversial change as users who are borrowing sICX now have to pay very high interest and can potentially be liquidated if not closely monitored. This change would have to be highlighted on frontend once users first come to the website, so they are aware.
Other proposals have been considered, but most of them can be gamed, and a combination of above three proposal seemed most fair. Once this proposal is implemented, [(ICX total supply balance - ICX total borrow balance)/ICX total supply balance * ICX deposited amount] of ICE can be distributed to ICX depositors. As one can see from the equation, ICX total borrow balance getting closer to 0 will lead to 1 ICE per 1 ICX deposit.