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In May, it was proposed that there would be monthly bad debt repayment made back to the DAO. At this current stage, the TWG recommends that this is changed to weekly payments.
The TWG recommends that weekly repayments are done for the following reasons:
Weekly repayments in this context includes: paying down ETH/WBTC/YFI bad debt, paying down DOLA bad debt, funding the 2 currently unreleased debt repayment contracts (more of these later).
When there is a repayment that will lead to capital becoming available to stuck users (so not 100% liquidations or DOLA repayment), it will be pre announced with at least 1 hour notice.
On June 16th, Inverse Finance was exploited again that resulted in a loss of ~$5.83M DOLA. The TWG believes that it is vitally important to to reduce the current DOLA bad debt, that currently stands at ~$10M DOLA in order to ensure DOLA is positioned to be a leading stablecoin for the next crypto bullrun. In order to facilitate the additional repayments of bad DOLA debt, the TWG requests an additional 450K DOLA (150K * 3 months) allowance to what was requested in the most recent TWG allowance proposal. The majority of this DOLA will be coming from the our OP bonds, recently restarted by the Policy Committee.
DOLA allowance requested previously:
$1.5m for rebalancing/liquidity
$15.6k for ad hoc compensation
$225k for non-DOLA bad debt repayments
With an additional $450k requested for repaying DOLA bad debt, the new total will be $2.19m
The spend distribution of budget request allocation is a forecast; there may be some deviation to actual allocations when it comes to it.
Set DOLA allowance to TWG Multisig to $2.19m
Members allowed to make Drafts can sign the fact that they reviewed the Draft Proposal
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