Proposal
XAI is currently minted by a number of crypto assets, with each asset being capped at a maximum mintable XAI. For example, USDC can mint up to 6M XAI whilst CVX can only mint 150,000 XAI.
Below is a list of all credit lines. Note that Effective Backing measures how circulating XAI is backed today.
| Silo | XAI Credit Line | % of total credit lines | Utilization | Borrowed XAI | Effective Backing |
|---|---|---|---|---|---|
| USDC | 5,000,000 | 27% | 37% | 1,850,000 | 50.57% |
| wstETH | 1,500,000 | 8% | 28% | 420,000 | 11.48% |
| CRV | 500,000 | 3% | 79% | 395,000 | 10.80% |
| gOHM | 1,100,000 | 6% | 26% | 286,000 | 7.82% |
| cbETH | 1,000,000 | 5% | 20% | 200,000 | 5.47% |
| FXS | 150,000 | 1% | 81% | 121,500 | 3.32% |
| LUSD | 1,500,000 | 8% | 7% | 105,000 | 2.87% |
| rETH | 1,500,000 | 8% | 6% | 90,000 | 2.46% |
| CVX | 150,000 | 1% | 39% | 58,500 | 1.60% |
| LINK | 500,000 | 3% | 10% | 50,000 | 1.37% |
| YFI | 500,000 | 3% | 10% | 50,000 | 1.37% |
| LQTY | 300,000 | 2% | 5% | 15,000 | 0.41% |
| OHM | 400,000 | 2% | 2% | 8,000 | 0.22% |
| USDT | 500,000 | 3% | 0% | 5,000 | 0.14% |
| BAL | 150,000 | 1% | 2% | 3,000 | 0.08% |
| WBTC | 150,000 | 1% | 1% | 1,500 | 0.04% |
| XAI-ETH | 1,250,000 | 7% | 0% | 0 | 0.00% |
| FRAX | 1,000,000 | 5% | 0% | 0 | 0.00% |
| DAI | 500,000 | 3% | 0% | 0 | 0.00% |
| ETH/stETH Curve LP | 350,000 | 2% | 0% | 0 | 0.00% |
| LUSD/3CRV Curve LP | 350,000 | 2% | 0% | 0 | 0.00% |
| FRAX/USDC Curve LP | 300,000 | 2% | 0% | 0 | 0.00% |
| Total | 18,650,000 | 100% | 3,658,500 | 100.00% |
Rationale
$XAI credit lines are a tool to bootstrap liquidity in lending markets to allow users to access leverage on their tokens while generating revenue for the SiloDAO.
We periodically modify credit lines to optimize XAI utilization to achieve two goals:
1- Generate traction in markets measured in the number of users using markets and frequency of borrowing;
2- Increase $XAI utilization to maximize the DAO’s revenue.
When we concentrate $XAI resources in silos with the highest activity, we maintain low borrowing rates in popular markets and generate additional revenue for the DAO.
In summary, the proposal aims to:
- Increase liquidity in high activity and priority silos.
- Bootstrap initial liquidity in new Curve LP Token silos .
- Decrease idle liquidity.
- Increase DAO revenue.
Summary of changes to XAI credit lines:
- Burn 1,550,000 XAI in 3 silos
- Mint 1,550,000 XAI in 3 silos
| Target Silo (Name) | Request Type | Change Amount | Current XAI Credit Line | Credit line AFTER proposal execution |
|---|---|---|---|---|
| XAI-ETH | Burn | 250,000 | 1,250,000 | 1,000,000 |
| gOHM | Burn | 600,000 | 1,100,000 | 500,000 |
| FRAX | Burn | 700,000 | 1,000,000 | 300,000 |
| OHM | Mint | 200,000 | 400,000 | 600,000 |
| CRV | Mint | 1,000,000 | 500,000 | 1,500,000 |
| stETH/ETH-ng | Mint | 350,000 | 0 | 350,000 |