In April, CompX Labs initiated discussion with the Algorand community via the Algorand forum on the subject of interest rate increases, dynamic interest and timing related to the xUSD Vaults as part of CompX (formally xBacked). A very good discussion was had with lots of fantastic ideas and feedbac…

Great I mean at this point can’t wait to see it in action oooo and what happens if xUSD go above $1 like $1.01 or $1.02 just wondering :thinking:

maybe @Xxiled can confirm, but I understood that if xUSD price is above $1, then fee is base rate = 3%. there is no need to increase fee because “premium” is not harmful. Regards, ROAM

Correct! Interest only increases as the peg moves below $1 - at $1 and above the base rate is all that is applied

What kind of intervention will compex do in case of market panic and the de-pegging persist?

Feels like two issues: Market Panic: Depending on the type panic we’re seeing we have a number of levers we can use, and more coming to help stabilise prices of xUSD. Additional liquidity, interest rate adjustments, vault configurations etc. Really will depend on the problem at the time. Persist D…

Design Notes - xUSD Dynamic Interest

General

mochanerd June 3, 2024, 1:16am 5

Arbitrage should be a normal market behavior if $xUSD is above peg!

Topic		Replies	Views
CompX - xUSD Interest Rates - Discussion General	23	741	May 10, 2024
GP12 DeFi Rewards (TDR) Proposal - CompX Rewards Proposals targeted-defi-reward	45	1252	May 14, 2024
xGov-197 - CompX - xUSD -> COMPX Staking xGov Proposals Pilot xgov , voting-session-4	10	673	August 6, 2024
xGov Proposal 159 - Dynamic Interest Stability and Zap Vaults Impl xGov Proposals Pilot community , xgov , voting-session-3	43	974	January 30, 2024
xBacked DeFi GP9 Post report & GP10 TDR Plan Governance Discussions gp9 , gp10 , targeted-defi-reward , distribution-reports	11	535	January 25, 2024

Design Notes - xUSD Dynamic Interest

Related topics