# A plan to deprecate XAI Stablecoin **URL:** \ **Category:** Proposal Discussion\ **Created:** [January 17, 2024, 3:35pm UTC](https://gov.silo.finance/t/a-plan-to-deprecate-xai-stablecoin/443 "2024-01-17T15:35:06Z")\ **Posts on this page:** 4\ **Page:** 1
**Author:** ![ayham.eth](https://yyz2.discourse-cdn.com/flex032/user_avatar/gov.silo.finance/ayham.eth/32/8_2.png) [@ayham.eth](https://gov.silo.finance/u/ayham.eth)\ **Post date:** [January 17, 2024, 3:35pm UTC](https://gov.silo.finance/t/a-plan-to-deprecate-xai-stablecoin/443/1 "2024-01-17T15:35:06Z")
## The end of XAI experiment We released the XAI stablecoin for the purpose of seeding liquidity in our markets and generate revenue to SiloDAO. The design was simplistic: Multi-collateral stablecoin without a stability module, relying on deep DEX liquidity to maintain its peg. The basic assumptions were 1- users would borrow XAI to LP it in the Curve pool along with FRAXBP to earn APRs that would far exceed the cost of borrowing XAI, 2- and the DAO would use generated revenues to grow the Curve pool incentives in tandem with its liquidity. However, in practice the following happened: - Most users borrowed XAI and exchanged it for USDC in stead of LPing, leaving the pool almost always imbalaned. The imbalance, which resulted in positive price impact for future LPs, didn’t serve as an incentive to borrow XAI to LP. - Despite high LP APRs, XAI failed to scale up its DEX liquidity. - Shallow liquidity on DEXs meant that large borrowers could not exchange it for other stablesoins, decreasing XAI’s appeal. - Not having a stability module meant XAI hovered slightly below the peg almost all the time, which discouraged users from holding the stablecoin or staking it. - The DAO paid roughly $300K in incentives to maintain ~$5M of liquidity. Increasing liquidity would have needed a much bigger budget that would result in negative ROI on the project. For the aforementioned reasons, it’s in DAO’s best interest to deprecate XAI and use the development and financial resources to focus on the lending product, while researching other viable stablecoin designs. ## Deprecation timeline - Stop incentivizing XAI/FRAXBP Curve pool on February 14, 2024. We expect incentives to to be cutt off completely by the end of February, 2024. - Retract XAI credit lines and direct deposits progressively from relevant markets. - Burn credit lines and deprecate the XAI module so no more XAI can be minted. - Remove SiloDAO’s deposit into the Curve XAI/FRAXBP. - Use vlCVX to vote for SILO/frxETH/crvUSD market and collect bribes. ## Next steps - Deliberate the proposal. - Execute the deprecation plan via onchain proposals. ## Resources XAI Stats: [XAI Statistics](https://analytics.silo.finance/mainnet/XAI/stats) ---
**Author:** ![ayham.eth](https://yyz2.discourse-cdn.com/flex032/user_avatar/gov.silo.finance/ayham.eth/32/8_2.png) [@ayham.eth](https://gov.silo.finance/u/ayham.eth)\ **Post date:** [March 6, 2024, 6:39pm UTC](https://gov.silo.finance/t/a-plan-to-deprecate-xai-stablecoin/443/2 "2024-03-06T18:39:40Z")
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**Author:** ![ayham.eth](https://yyz2.discourse-cdn.com/flex032/user_avatar/gov.silo.finance/ayham.eth/32/8_2.png) [@ayham.eth](https://gov.silo.finance/u/ayham.eth)\ **Post date:** [April 22, 2024, 2:00pm UTC](https://gov.silo.finance/t/a-plan-to-deprecate-xai-stablecoin/443/3 "2024-04-22T14:00:08Z")
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**Author:** ![ayham.eth](https://yyz2.discourse-cdn.com/flex032/user_avatar/gov.silo.finance/ayham.eth/32/8_2.png) [@ayham.eth](https://gov.silo.finance/u/ayham.eth)\ **Post date:** [April 22, 2024, 2:10pm UTC](https://gov.silo.finance/t/a-plan-to-deprecate-xai-stablecoin/443/4 "2024-04-22T14:10:22Z")
**Action 1** We are updating the IRM parameters for XAI in several markets to increase borrowing interest rates. Since we announced the DAO’s intention to sunset XAI, some users have repaid XAI loans, but many have not. Increasing borrow APRs for XAI will encourage those users to repay. Below is a summary of the changes: _PS: Refer to this document for [this guide](https://docs.google.com/spreadsheets/d/e/2PACX-1vRLo1lDagVyKlPo4ftDz1vWwyU4IO0TOwqgB4to1Cr37k-wR4_3G7TyF5w0NYbt_LQDvkFFIeZZSyeS/pubhtml) on interest rates set by each param type._ bridgeETHv9 interest rate curve: ![Screenshot 2024-04-22 at 9.06.07 AM](https://canada1.discourse-cdn.com/flex032/uploads/silo/original/1X/1d154e4393be6b2e67d02dc0dae1f7dbdf8501b1.png) **Update IRM params for XAI in wstETH market** Target market: 0x4f5717f1EfDec78a960f08871903B394e7Ea95Ed Target asset (XAI): [$0.99 | XAI Stablecoin (XAI) Token Tracker | Etherscan](https://etherscan.io/token/0xd7C9F0e536dC865Ae858b0C0453Fe76D13c3bEAc) IRM parameters: bridgeETHv9 **Update IRM params for XAI in wBTC market** Target market: 0x31F3b3B86a074e2ffc4fd75D8Eb9721a75ee04DC Target asset (XAI): [$0.99 | XAI Stablecoin (XAI) Token Tracker | Etherscan](https://etherscan.io/token/0xd7C9F0e536dC865Ae858b0C0453Fe76D13c3bEAc) IRM parameters: bridgeETHv9 **Update IRM params for XAI in FXS market** Target market: 0xf39f64D85AD89200e3b06C67F679c45798bF6a5b Target asset (XAI): [$0.99 | XAI Stablecoin (XAI) Token Tracker | Etherscan](https://etherscan.io/token/0xd7C9F0e536dC865Ae858b0C0453Fe76D13c3bEAc) IRM parameters: bridgeETHv9 **Update IRM params for XAI in USDT market** Target market: 0xcd888c9Bd53c1CA49b9251F74Cc93C73E22963fa Target asset (XAI): [$0.99 | XAI Stablecoin (XAI) Token Tracker | Etherscan](https://etherscan.io/token/0xd7C9F0e536dC865Ae858b0C0453Fe76D13c3bEAc) IRM parameters: bridgeETHv9 **Update IRM params for XAI in BAL market** Target market: 0x92E7E77163FFed918421E3CB6e0A22F2Fe8B37FA Target asset (XAI): [$0.99 | XAI Stablecoin (XAI) Token Tracker | Etherscan](https://etherscan.io/token/0xd7C9F0e536dC865Ae858b0C0453Fe76D13c3bEAc) IRM parameters: bridgeETHv9 **Update IRM params for XAI in** stETH-ng-f-silo **market** Target market: [0x339666A930fd79C190e824dd9d9df0393b8BD196](https://app.silo.finance/silo/0x339666A930fd79C190e824dd9d9df0393b8BD196) Target asset (XAI): [$0.99 | XAI Stablecoin (XAI) Token Tracker | Etherscan](https://etherscan.io/token/0xd7C9F0e536dC865Ae858b0C0453Fe76D13c3bEAc) IRM parameters: bridgeETHv9 **Update IRM params for XAI in LUSD market** Target market: 0xbc6594df90ddeada7cdd70dbc08e221a77512deb Target asset (XAI): [$0.99 | XAI Stablecoin (XAI) Token Tracker | Etherscan](https://etherscan.io/token/0xd7C9F0e536dC865Ae858b0C0453Fe76D13c3bEAc) IRM parameters: bridgeETHv9 **Update IRM params for XAI in USDC market** Target market: 0xFCCc27AABd0AB7a0B2Ad2B7760037B1eAb61616b Target asset (XAI): [$0.99 | XAI Stablecoin (XAI) Token Tracker | Etherscan](https://etherscan.io/token/0xd7C9F0e536dC865Ae858b0C0453Fe76D13c3bEAc) IRM parameters: bridgeETHv9 **Update IRM params for XAI in LQTY market** Target market: 0x629b9e70a7d32c718318d691dda5da585e468b82 Target asset (XAI): [$0.99 | XAI Stablecoin (XAI) Token Tracker | Etherscan](https://etherscan.io/token/0xd7C9F0e536dC865Ae858b0C0453Fe76D13c3bEAc) IRM parameters: bridgeETHv9 **Update IRM params for XAI in gOHM market** Target market: 0xc413dd03555f3eb29d834b482d386b2999dc2eb0 Target asset (XAI): [$0.99 | XAI Stablecoin (XAI) Token Tracker | Etherscan](https://etherscan.io/token/0xd7C9F0e536dC865Ae858b0C0453Fe76D13c3bEAc) IRM parameters: bridgeETHv9 \*\* Update IRM params for XAI in cbETH market\*\* Target market: 0x2eaf84b425822edF450fC5FdeEc085f2e5aDa98b Target asset (XAI): [$0.99 | XAI Stablecoin (XAI) Token Tracker | Etherscan](https://etherscan.io/token/0xd7C9F0e536dC865Ae858b0C0453Fe76D13c3bEAc) IRM parameters: bridgeETHv9 **Action 2** Burn XAI credit line lines in the following markets: | Date | Target Silo | Target Silo (Address) | Burn amount | | --- | --- | --- | --- | | 4/17/2024 | LQTY | 0x629b9e70a7d32c718318d691dda5da585e468b82 | Burn full available | | 4/17/2024 | gOHM | 0xc413dd03555f3eb29d834b482d386b2999dc2eb0 | Burn full available | | 4/17/2024 | XAI-ETH | 0xC8CD77d4cd9511f2822f24aD14FE9e3C97C57836 | Burn full available | | 4/17/2024 | sXAI-stkcvxLUSD3CRV-f-silo | 0x74a633b156b55711D0c91e64fa7DE3B7aF87470a | Burn full available | | 4/17/2024 | YFI | 0xa0460fceb47886920aad8a87b627f3890793d1a6 | Burn full available | | 4/17/2024 | LINK | 0xcB3B879aB11F825885d5aDD8Bf3672596d35197C | Burn full available | | 4/17/2024 | CVX | 0xa104F14AeeB9b7246367D6a6E1f4E2C61A70e5d3 | Burn full available | | 4/17/2024 | OHM | 0xf5ffabab8f9a6f4f6de1f0dd6e0820f68657d7db | Burn full available | | 4/17/2024 | XAI-USDC | 0xFCCc27AABd0AB7a0B2Ad2B7760037B1eAb61616b | 3,510,445 | | 4/17/2024 | LUSD | 0xbc6594df90ddeada7cdd70dbc08e221a77512deb | 365,471.00 | | 4/17/2024 | sXAI-stkcvxstETH-ng-f-silo | 0x339666A930fd79C190e824dd9d9df0393b8BD196 | 254372.775 | | 4/17/2024 | rETH | 0xb1590d554dc7d66f710369983b46a5905ad34c8c | 250,000.00 | | 4/17/2024 | cbETH | 0x2eaf84b425822edf450fc5fdeec085f2e5ada98b | 221,681.63 | | 4/17/2024 | BAL | 0x92E7E77163FFed918421E3CB6e0A22F2Fe8B37FA | 136,895.99 | | 4/17/2024 | USDT | 0xcd888c9Bd53c1CA49b9251F74Cc93C73E22963fa | 33,136.65 | | 4/17/2024 | FXS | 0xf39f64D85AD89200e3b06C67F679c45798bF6a5b | 21656.8 | | 4/17/2024 | wstETH/ETH | 0x03ff864f65a69e6c025f68f5695fa243f8d2d61b | 0.00 | | 4/17/2024 | wBTC | 0xbC6594df90ddeADA7CDd70dBc08E221a77512Deb | 0.00 | XAI credit line stats: [XAI Statistics](https://analytics.silo.finance/mainnet/XAI/stats)