Burn existing $XAI credit line to $CRV silo

Burn existing $XAI credit line to $CRV silo on Silo Legacy.

Silo currently has two $CRV silos on main net:

  1. Silo Legacy - 1.5m $XAI credit line deployed of which 900k is utilized ($2.8m TVL)
  2. Silo Llama - 6.7m $crvUSD deposited ($21m TVL)
    We believe that that the DAO should focus its efforts on Silo Llama for two main reasons:
  3. XAI Dependency
    $XAI is dependent on XAI-FRAXBP liquidity which is bootstrapped by protocol-owned $CVX. Liquidity has been one of the core constraints of Silo Legacy and we believe it would be prudent to pivot our dependency from the pool. This may also open up treasury $CVX for other growth activities.
  4. Fragmentation
    Two $CRV silos makes for poor UX as liquidity in one silo is vampiric on liquidity on another. By deprecating credit lines, we aim to encourage users to migrate liquidity to Silo Llama to drive more activity.

Relevant parties have been notified about the burning of credit lines so that they may prepare. We intend to reduce credit lines to the $CRV silo in one go.

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