Proposal to lower A parameter on pUSD pool to 50

Summary:

Proposal to lower A parameter on pUSD pool to 50

Abstract:

A short description of the proposed change.

Motivation:

Lowering the A factor will reduce systemic depeg risk from imbalance of pUSD in the pool.

Specification:

Lower the A parameter from 100 to 50 on pUSD (https://curve.fi/factory/113)

For:

Lowering A will disincentivize excessive imbalance of pUSD in the pool, avoiding tail-end depeg risk and keeping pUSD’s value more inline with it’s 3CRV pairing.

Against:

Do not lower the A parameter of the pUSD pool (do nothing)

Poll:

Post a link to your proposal if it’s already been created

5 Likes

This proposal is from the JPEG’d team, who created the PUSd stablecoin. It is a safe and uncontroversial proposal, in my opinion.

This stablecoin is quite new, so doesn’t have enough historical data for our typical simulations. However, by lowering A, this proposal would reduce risk to LPs, at the potential expense of returns. Given that this is a relatively new coin, and given current market conditions, this seems like a reasonable approach to me.

7 Likes

Why not just create another pUSD-3CRV pool?

eg: Steth concentrated pool: Curve.fi