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The community discussed freezing the RENFIL reserve due to Ren 1.0 Network's winding down, expressing concerns about the remaining $100k in renfil and the current interest rate model's effectiveness. Issues were raised about the inability to repay or liquidate the 22k debt, the status of the proposal and its implications for arenFIL, and the availability of liquidity for withdrawal, but the discussion ended without a clear resolution.
The discussion primarily focused on the proposal to freeze the RENFIL reserve due to the winding down of Ren 1.0 Network [Oneski22 - 1]. There was significant concern about the remaining $100k in renfil deposited, with $90k of this already lent out. The community expressed doubts about the effectiveness of the current interest rate model, which was seen as inadequate to incentivize repayment or force liquidations within the next 2 weeks [Monet-supply - 2].
Sakulstra raised the point that increasing rates might not be the best solution, as it could potentially push accounts into liquidation faster, without providing a viable way for them to repay. They also highlighted the issue that there is currently no way to repay or liquidate the 22k debt, as there's no way to mint any more [Sakulstra - 3].
There was some confusion about the status of the proposal and its implications for arenFIL going to the treasury [Null_radix - 4]. Sakulstra clarified that the initial idea was to have worthless arenFIL on the treasury rather than at users accounts, but conceded that this argument no longer held much weight as there is currently no more renFIL to withdraw [Sakulstra - 5].
The discussion also touched on the availability of liquidity for withdrawal, which seemed to have been drained quickly [Sakulstra - 6, Null_radix - 7]. However, Sakulstra later mentioned that there was some available liquidity and the bridge may not yet be closed [Sakulstra - 8]. The discussion ended without a clear resolution, leaving the community to continue deliberating on the best course of action.
Posted a year ago
Last reply a year ago
Summary updated 2 months ago
Last updated 09/12 13:53