A brief update on the offboarding plan:
As anticipated, there has been a significant decrease in deposit and borrow positions prior to the AIP execution. Users foresaw the AIP and shifted their positions to borrow other stablecoins.
Currently, the available liquidity is $815k, which allows all aBUSD holders, except for the top holder, to exit overnight.
The top 5 variable debt borrowers (positions above $100k) possess healthy health factors and high-quality collateral (stETH, WBTC, wETH). If they choose not to exit their positions, they would likely face liquidation eventually without impacting the protocol’s health.
Thanks to the high reserve factor, the protocol has earned approximately $130,000 in BUSD and virtually over $200k in total, including unrealized earnings from current open borrower positions. The protocol continues to earn $10-20k per day.
So far, the offboarding appears successful, and the ACI does not recommend any further action to increase the APR for remaining borrowers at this time.
Our current suggestion is to adopt a “wait and see” approach for the next few weeks, allowing current borrowers to respond and close their positions.
If repayments remain low during this period, the ACI is open to further increasing the Slope2 parameters to encourage repayments more strongly or lead current borrowers to liquidation. It remains uncertain how long BUSD will stay liquid and maintain its peg.