As everyone knows market is getting very volatil, the Venus(XVS) Vault allows to earn decent rewards but it has a big wall, as to acess the tokens we need to wait 7 days, with this, when there is a binance launchpad or even launchpool we do loose the window to participate as we have our tokens locked.
Im bringing this proposal to allow a instant redemption of XVS, soo anyone can manage their loans as well to participate into any event that comes(Usually binance events) with a small fee associated :1%
The only issue allowing this instant redemption is that XVS might allow more stress . Despite Venus has a borrow limit wich might affect this proposal, as its impossible to allow all circulating XVS to be used as colateral, because the risks associated to it…
I think an instant redemption fee is a good idea to add flexibility to the UX for the vault. Maybe 1% is too low, however, because the trade off is reducing the security of the protocol with the staked XVS.
If users want to forego the waiting period I imagine a 5-10% fee is more suitable.
To be honest it won’t work as the XVS deposit limit is mostly reached so there is no space to add any. If we will go for a higher limit then we will have a lot of risks in that space. On the other hand we could make a instant withdrawal fee but what for then?
As we walk into the bull market vibes… bitcoin halving and many more events… the instant fee can be to some whales to manage their positions and avoid being liquidated as well… sure right now the XVS borrow cap is filled, expecting it go open at others chains as well…1% its a lot if you consider big wallets… asking anything above wouldnt make any sense… you earn 8-10% APY… this fee is deducted instant…