The Inter Protocol Economic Committee (EC) met to consider the appropriate limits for the Inter Protocol MVP launch.
At launch the Parity Stability Module (PSM) has been implemented with four stablecoins:
- USDC_axl: USDC via Axelar
- USDC_grv: USDC via Gravity Bridge
- USDT_axl: USDT via Axelar
- USDT_grv: USDT via Gravity Bridge
Additional stablecoins can be brought into the PSM via governance. The role of the EC is to determine fees and minting and debt limits, and to provide advice on new assets (stablecoins under PSM-only launch, then any arbitrary assets) under BLDer DAO community consideration.
The EC considered technical, economic, and legal risks of each asset. It also sought and considered recommendations from Agoric OpCo, and from the DCF which will be supporting the launch with an incentive program.
The EC also considered the availability of liquidity for each asset in the interchain ecosystem. Liquidity is relevant for IST bootstrapping (we want to make sure our early minting limits can be reached) and for potential short term risk (low liquidity of an asset might reduce arbitrage opportunities).
The EC concluded that the minting limits should be staggered in two phases as a prudent method of managing risk at launch.
As soon as possible after the upgrade and deployment of the PSM contract, the total IST minting limit will be IST$500,000. This will consist of the following assets:
- USDC_axl: IST$300,000
- USDC_grv: IST$100,000
- USDT_axl: IST$75,000
- USDT_grv: IST$25,000
No less than a week later the EC will raise the mint limits to IST$5,000,000, consisting of the following assets:
- USDC_axl: IST$3,000,000
- USDC_grv: IST$1,000,000
- USDT_axl: IST$750,000
- USDT_grv: IST$250,000
We are coordinating with Agoric OpCo and the DCF to launch Phase 2 at the same time as the release of BLD incentives on Osmosis. We expect that to occur 7 days after Inter Protocol launch.
The EC will meet regularly to consider market conditions and the appropriateness of the minting limits that have been set.