Proposal to Close BUSD Pools and Gradually Reduce Interest Rates

Proposal to Close BUSD Pools and Gradually Reduce Interest Rates

Purpose:

To protect our community from the sunset risk associated with BUSD by closing the BUSD-related borrow and supply pools immediately and gradually reducing interest rates to zero. This measure aims to safeguard users who may not have received the latest information about BUSD.

Overview:

BUSD is facing a sunset risk, which necessitates immediate action to prevent potential losses and disruptions for our community members. As a proactive measure, we propose to:

  1. Immediately close the BUSD-related borrow and supply pools.
  2. Gradually reduce the borrow and supply interest rates over a specified timeline.

Proposed Actions:

  1. Immediate Closure of BUSD Pools:
    Effective immediately upon approval of this proposal, we will disable the borrow and supply functions for all BUSD-related pools. This will prevent any new BUSD transactions, thereby limiting exposure to the sunset risk.
  2. Phased Reduction of Interest Rates:
    First Phase:
    Timeline:** Upon decision approval.
    Action:** Reduce current borrow and supply interest rates by 40%.
    Second Phase:
    Timeline:** Two weeks after the first phase.
    Action:** Further reduce borrow and supply interest rates by 80% of the original rates.
    Final Phase:**
    Timeline:** One month after the first phase.
    Action:** Set borrow and supply interest rates to 0.

Implementation Timeline:

Decision Approval Date:
Immediate closure of BUSD pools.
Initial 40% reduction in interest rates.
Two Weeks After Approval:
Further 80% reduction in interest rates.
One Month After Approval:
Final reduction of interest rates to 0.

Rationale:

The phased approach ensures that users are gradually transitioned out of BUSD-related activities, providing ample time to adjust and reducing the risk of sudden disruptions. This strategy aims to:

  • Protect users who might not be aware of the BUSD sunset risk.
  • Minimize potential financial losses for our community members.
  • Ensure a smooth and orderly transition away from BUSD.

Conclusion:

By implementing this proposal, we prioritize the safety and well-being of our community. The immediate closure of BUSD pools, combined with a gradual reduction of interest rates, offers a balanced approach to managing the sunset risk of BUSD, ensuring minimal disruption and maximum protection for all users.

Call to Action:

We urge the community to support this proposal for the benefit of all members. Your prompt attention and approval are crucial to safeguarding our collective interests.

This proposal is a well-thought-out and proactive measure to protect our community from the risks associated with BUSD. The phased approach shows a strong commitment to minimizing disruptions and safeguarding our interests. I fully support this initiative.

I appreciate the immediate action plan and the clear timeline for reducing interest rates. This proposal demonstrates a responsible approach to risk management and ensures that users have enough time to transition smoothly.

The detailed implementation timeline is very reassuring. It gives us a clear picture of what to expect and when, allowing us to plan accordingly. Great job on addressing the BUSD sunset risk comprehensively.

Closing the BUSD pools immediately is a decisive step to prevent further exposure. The gradual interest rate reduction strategy is thoughtful and considers the users’ need for adjustment time. Well done!

While the proposal is well-intentioned, I think the timeline for interest rate reductions might be too aggressive. Users might need more time to adjust to these changes

Reducing the interest rates to 0 in just a month might be too drastic. This could negatively impact users who rely on these rates. A more extended timeline for interest rate reduction might be more beneficial

I’m concerned that the immediate closure of BUSD pools could cause panic among users. A more gradual approach to closing the pools might have been better to avoid sudden disruptions.

I appreciate the transparency and clarity in this proposal. The phased reduction of interest rates is a sensible approach, giving everyone ample time to adjust. Kudos to the team for prioritizing our safety.

Let us just do it ,just do it just do it just do it

This is a very well-structured proposal that addresses the BUSD sunset risk effectively. The immediate closure of pools and gradual interest rate reductions are practical steps to ensure our community’s stability. Great job!