feat: Add initial redemption base rate #110
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| @@ -3552,7 +3552,7 @@ contract("BorrowerOperations", async (accounts) => { | |||
| const baseRateBefore = await troveManager.baseRate(); | |||
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| // Artificially make baseRate 5% | |||
| await troveManager.setBaseRate(dec(5, 16)); | |||
| await troveManager.setBaseRate(dec(6, 16)); | |||
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Hmm, it wasn't immediately obvious why this had to be changed to 6%, but I guess it's because it has to be higher than baseRateBefore, which is now 5%. Should the comment be updated too?
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From what I can tell this sets the initial baseRate to 5% as intended ✅ but doesn't actually enable the redemption fee, which remains hardcoded at 0%. I guess this is intended for now? Also, as this lets the baseRate decay from the start: are we going to revisit the decay rate, or leave it be? Within 4 days it'll naturally decay from 5% to 0.3125%, which is not much of a bootstrap period in my opinion. I know we agreed to let it decay, but I can't remember the reasoning. Wouldn't it be better if the rate stayed at 5% for some period of time, and only started decaying after that? Redemptions would still be allowed at a fee rate of 5%. We could skip the baseRate increase during this bootstrap period so that the price floor doesn't drop below 0.95 if there are redemptions during that time. |
| constructor() ERC721(NAME, SYMBOL) { | ||
| // Update the baseRate state variable | ||
| // To prevent redemptions unless Bold depegs below 0.95 and allow the system to take off | ||
| baseRate = INITIAL_REDEMPTION_RATE; |
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Since it still decays with the same half-life, in ~4 days it will be down to 0.2%. I wonder if this decrease is too rapid? We may want at least 1-2 weeks for TVL to build up.
Also, we've commented out redemption fees (see _calcRedemptionRate) so in practice no redemption fee will be charged until we change that.
Yes, that sounds reasonable. Edit: Worst case we could put a crazily high initial base rate, so that it gets to 5% after the time we want (we should do the math). In practice it would be similar to block redemptions, which was the previous behaviour. |
And remove previous bootsrap 2-week lock for redemptions.
Remove unused constant. Add commen to test.
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And remove previous bootsrap 2-week lock for redemptions.
Closes #109 .