Yes this can be a good option if C ratio goes above 300% or 500% early investors get an option to pay off their debts. @andre but again my stress would be on the timing. If we can just wait till FTM recovers close to ATH definitely its a win win situation for everyone.
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Hello again Andre,
About fusd liquidations, as a delegator how can I monitor bad depths of my validators ? How can I protect myself not to slashed my delegated ftm ?
Thanks,
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Unfortunately, we can’t plan actions / protocols around price. If the mechanisms is dependent on price, its a faulty mechanism, it should work irrespective. The only way to clear bad debt, is to liquidate. Without liquidations, the bad debt will persist. So that’s the only protocol level option.
All users need to do, is settle their fUSD debt and then their positions will be at no risk.
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As my previous response, we can’t build mechanisms based on price, mechanisms must work irrespective of token values. All that is required is to settle outstanding fUSD debt, after that is done, positions won’t have any risk.
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If you delegated you won’t get slashed, if a validator has debt and gets liquidated, their validator is simply removed from the validator list, you can just unstake your delegation. Your only risk is that you won’t be earning rewards during that time as their validator won’t be earning rewards.
You can monitor their position via platforms like debank or Fantom native explorer; https://explorer.fantom.network/
You can just put in their address.
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What about suggesting a plan that could safeguard early minters like suggested by Fantom team previously? Cant we put that proposal through voting? We all know there can be methods created to make it win win for all, why cant we try to look at that?
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What does that address though? The goal is to remove bad debt, that means we need to liquidate under water positions. Not doing that means we don’t achieve that goal. I don’t see how “ignoring the problem”, addresses the problem.
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Hi Andre,
I had this typed up but with your recent post The death of Defi & RWA. I’ve had to reword parts of it.
I don’t believe it is dead either, it’s just becoming more stabilised between points A to B.
What I do find fascinating about this bear market is that a project with a single token contract or a single-use platform is evolving into a complex ecosystem.
Currently, in simplest form, I take a project token and stake it on a platform and compound or sell the reward for example, however
What we are now seeing is almost a network [the project {I don’t mean a layer 2}] built on top of a network [the blockchain] where you can inter-trade and fully fulfil your requirements for using crypto in this single project platform… platform may include dozens of related tokens, investing, farming, arbitrage, loans and more etc.
This is not a shill but I have followed a project Multi Chain Capital closely which has acted in silence and has created a huge network of smart contracts with the largest core of the projects built on fantom. Some contracts such as a Liquity fork and a MasterChef fork are straightforward but how the other 30 contracts function outside of this will be fascinating to see.
This leads me to Blockchain banking or at least an open-regulated version of a bank which I believe you are a fan of. [I don’t mean in liquidity pairs or full collateralised lending] Are we now at a time with off-chain billion-dollar businesses collapsing, are we going to see a rise of locked liquidity on the chain that can never be removed and start to fund loans with repayment and interest rates? This can then be the backstop to off-chain loan protocol systems with the original funds fully visible and auditable.
I typed up what I think is a clever scenario of another project with inter-tradeable liquidity sinks (potentially done over multichain too) which become a backstop to lenders always being able to revoke their investment at any time in full.
Look forward to hearing from you.
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Like you said the goal is to clear the bad debts, the fantom team clearly stated that they are are financially in healthy position to deliver and stand in future. So why cant simply we clear the debts at a later stage when all can easily pay off (just a matter of waiting a little)? I mean this is still a solution that gets your goal and doesnt rekt people in current prices.
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As mentioned in Fwallet, if C Ratio climbs above 300% the stake will be unlocked.
1 If our fusd debt is 1/3 of the stake value, can we possible unlock the staked sftm to repay the debt?
- If the debt becomes 1/5 or even more cant you put an option to unlock the staked ftm to repay the debt if someone doesnt have extra funds oitside to repay fusd?
3.or simply add the liquidity of fusd in Fwallet to repay the debt from staked ftm?
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How does waiting change the status quo? Nothing changes, either way, fUSD debt needs to be repaid. Fantom’s treasury position has nothing to do with fUSD. Fantom won’t make money from liquidations, its an open protocol, and bad debt is ~20%, which means if we did liquidate, we would lose money. We are going in circles now though, so lets close this.
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Hey Andre a question regarding gas on fantom. Plenty of times while checking ftm scan i see that there are only single digit tx’s pending in the queue, and gas is hovering at around 150-200 gwei.
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Why is the gwei so high if there is almost no congestion going on in the network.
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Why when i attempt to lower current gwei to something like 80-90 my transaction will immediately fail, so the only option is to keep submitting 150 gwei transactions, even though that is unnecessarily high for current network conditions.
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Hey Andre,
Has it been decided what the trade routing for liquidations will be? Will the collateral be sold into fusd through the fwallet pool to pay off debts, wherever the best market rate is, through the fantom dai to fusd swap, or undecided as of yet? Has a date been set for liquidations to go live, or at least an estimate?
Thanks
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No route, fUSD is used to liquidate positions and receive FTM. No further action required. How fUSD is obtained is up to each liquidator. No current ETA on release, we are happy with the mechanism, but need to plan ample time for users to close their positions.
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I don’t know the answer to this one, I’ve asked the team to assist me with an explanation. I believe there is a minGas setting, but I don’t recall why it exists off the top of my head. Will revert when I have the data.
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I was told
" 1. If FTM $ value is > fUSD debt no liquidation will occur, when you pay back the debt you can claim it again" ie a c-ratio over 100%
I guess this makes me wonder if sFTM is no longer a thing?
if so what happens to minters who used sFTM to mint fUSD… are they liquidated regardless of c-ration position?
if sFTM is still around why are we being locked out of claiming rewards at the moment? (rewards that could be used to pay off fUSD debt…)
side question:
has the 6% APY for c-ratio above 500% been stopped yet?
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FTM and sFTM are 1:1 so they are used interchangeably. So “If FTM $ value > fUSD debt” is equivalent to saying “If sFTM $ value > fUSD debt”. sFTM is being decommissioned completely though as soon as all the debt positions are cleared up.
There are currently no rewards for minting fUSD, including above 500% c-ratio.
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Hi Andre, what’s the latest with Barek, is he still with the foundation as COO? if so what’s he up to?
I just notice he has been awfully quiet on socials as of recent?
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Hi Andre.
What role do you see for the Fantom blockchain in the A.I industry?
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Haven’t interacted with him much recently, last he was busy in Europe doing government blockchain activist work. Current sentiment in institutions and regulatory bodies are disinterest. His work is probably the hardest, but eventually the most rewarding. But best to ask him directly as I don’t interact with him much.
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