In an attempt to push DAI closer to peg, we want to update the “A” variable on y pool from current 2000 to 1000. This will increase the % of DAI share in pool, and also make DAI more expensive to purchase (but cheaper to add). This incentivizes selling DAI into the pool.
Update A from 2000 to 1000
The y pool is currently very liquid and given the high “A” this means that DAI can be bought for “cheap”, the proposed change will make it more expensive and hopefully help push DAI to peg.
One caveat to this, is that it does effect “virtual” profits. So right after the switch it will appear as if there is a “loss” even though this is just temporary. This will also immediately be offset by CRV incentives.
Commit A 1000 on y pool only
Decrease A, increase % DAI in y pool
Temporary “virtual” loss for LPs, will be near immediately offset by LP incentives.