I’ll start by responding to this as it’s an important point. There are multiple ways to turn a civil conversation into a hostile one. One can use a rude tone/language, one can be closed off to outside opinions and not acknowledge the merit of those opinions, and one can use bad faith tactics.
You have not been open to the merit of my idea. We have been discussing this proposal for about a week, and it is only now that you give any concession and even that you do begrudgingly and dismissively “Your thesis is likely correct but it is irrelevant to Silo.” We are disagreeing on some points, but calling my arguments irrelevant is rude and closed-minded.
You posted a reply, then either deleted it and posted a new one, or deleted it and then edited your reply. Either way, it seemed like a bad faith tactic (Which reply am I responding to? Why did you have to change your reply/opinion within a short time?). If you say it was an error on your part, I’ll give you the benefit of the doubt and accept that.
Now, I very much want us to have a civil conversation. But for that to occur we both have to show humility, and that includes being open to that one isn’t always right and others’ ideas might be worth pursuing. Hostility breeds more hostility. Be nice, and you’ll be treated nicely.
“Effort is irrelevant”
I think we should strive to do things efficiently. That includes doing larger credit line expansions less often as compared to many small credit line expansions more often.
“We are not a stablecoin project that makes money on minting volume”
I always said that one of the cons of my proposal is that there will be “lower short-term profits for the DAO” (see my posts above). Now, please try to understand what my point is: It is okay for the DAO to make less profit in the short-term so that we can grow our TVL/protocol more quickly. You’re argument seems to be that this is something that we shouldn’t do as any credit line expansion should be funded by profits the DAO makes from interest rates. That’s very fiscally responsible, but I do not think fiscal responsibility should always be our highest priority. Our TVL is now below 30M USD. It is extremely small. We should focus on growth, and fiscal responsibility is something that can take second place for a short time while we grow the protocol.
" Lowering interest rates is always easier than increasing them" I think you are mistaken, or I’m missing something. Expanding credit lines will drop utilization and therefore interest rates (driving demand). It is not hard to later increase interest rates. Actually, the DAO needs to do nothing at all if utilization picks up, interest rates would go up by themselves. If the CL remains unused, then a proposal to remove/decrease the CL can be easily implemented, as the CL remains unused. So either it requires no effort, or small effort.
“You are rushing into conclusions prematurely without accounting for the time factor.”
Please remain humble, I am not rushing to a conclusion, so don’t assume so. I have given this a lot of thought. I have thought about the time factor, and as I said, decreasing interest rates only affects DAO profitability in the short term, but increases profitability in the long term.
“The process is professional and transparent.”
Fantastic, sounds like the current process gives an answer of 2M XAI per silo. This proposal keeps within that limit “1.5M XAI for the volatile asset silos [gOHM, wstETH, cbETH, FRAX, LINK], 2M XAI for stable assets silos [LUSD]”
“monitoring for unknown unknowns” And who decides when enough monitoring has been done, You or the DAO? If it’s the DAO, let’s put this proposal to a vote.
Aiham, as a general point, we are having a difference of opinion. You want the DAO to take it slow and steady because it limits risk. I think we should be taking on more risk with the benefit being faster growth. Both approaches have merit, and there is no right or wrong answer because nobody can look into the future and say which approach leads to the better outcome. And it doesn’t matter because it’s the DAO that decides what strategy is followed and it should be voted on by the DAO. So, when are we gonna have a vote on it?