Hello everyone! Thank you @Ryan.Christensen for the proposal and all the work that was put into it.
We’d like to propose an alternative technical solution that could simplify this process.
Instead of pausing withdrawals, deposits and slashing, a flash loan could be used to refinance the loan. The plan would be to submit a new loan request, and to use funds from a flash loan to repay the old loan and then withdraw a new loan in a single transaction.
We believe this is a better alternative as it would remove the need for any major changes or upgrades to the USDC pool.
The plan was already consulted with the AB engineering team. Plan seems to be completely feasible and a proof of concept of a smart contract that would perform the flash loan and the refinancing was already created.
Another advantage of refinancing the loan with a flash loan is that the new loan would need to go through a rating process, so the whole procedure will need to get an explicit approval from token stakers.
In summary, the proposed plan is to:
- Create a new loan application, on new terms and submit it for rating
- Rate new loan, as new loans used to be rated
- Execute funding new loan and repayment of old loan in a single transaction, using a flash loan from other liquidity source (like i.e. Aave)
Potential Benefits:
- No major changes or upgrades to the USDC pool necessary
- New loan would go through standard loan rating process, require explicit stkTRU approval
We believe that this is the best way to go forward and work on the issue in the spirit of transparency, decentralization and trustlessness.
Cheers!
Bartek