Abracadabra Community Votes On Revised Proposal For “Rate Adjustments to CRV Cauldrons”

Key Points:

• The Abracadabra community votes on a revised proposal for “Rate Adjustments to CRV Cauldrons” to address the protocol’s CRV exposure.
• A prominent investor’s influence leads to the rejection of the previous proposal, prompting a stricter revised version with modified interest rates.

The Abracadabra community, the issuer of algorithmic stablecoin MIM, is currently conducting a crucial vote on the “Further Amendment of Interest Rates” AIP #13.6 proposal. 

This revised version is part of the “Adjustment of Interest Rates on CRV Cauldrons” AIP #13.5 proposal, aimed at addressing the protocol’s significant CRV exposure. Voting is set to conclude on August 6.

The proposal was put forward by a prominent Abracadabra investor, masterofdisaster.eth, who wielded significant influence by voting 10 billion SPELL against the previous AIP #13.5 proposal, resulting in its rejection. His rationale was based on the need for changes in the proposed interest rate, considering the completed repayment and potential CRV liquidity increase.

Compared to the previous AIP #13.5 proposal, the new AIP #13.6 features a stricter definition of the outstanding principal amount scope and corresponding base rate revisions. The proposed base rate has been reduced, while the rate multiplier has been replaced with a range of interest rates, granting greater flexibility to impact the overall base rate.

The Abracadabra community recently achieved a significant victory when they were able to effectively pass the AIP 13.4 proposal for “emergency freezing CRV market liquidation.” These continual votes are evidence of the community’s active participation and commitment to the process of creating the governance and stability of the protocol.

When the voting time is over, the results will be tallied, and based on those, the next steps for making rate modifications to CRV cauldrons within the Abracadabra ecosystem will be established. Participation from the community and careful consideration of the issues at hand will be of critical importance in determining the protocol’s trajectory into the future and ensuring that it adheres to sustainable and secure financial standards.

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