The solution to re-peg Vai is coming

Dear Venus community,

As mentioned before, we have long noticed Vai’s off-peg problem and designed a solution to solve it, and we have solicited the opinions of professional teams and some community members.

This solution needs to meet multiple conditions: the best practices of real products, the amount and difficulty of code development, the predictability of the mechanism, the security and audit workload, and the difficulty of actual implementation, etc., so we spent a long time designing, discussing and modifying the plan.

At present, the plan has taken shape and will be released in the second half of this week.

Like other assets, the price of Vai is determined by supply and demand. When the supply of Vai in the market is too high and the demand is insufficient, the price of Vai will deviate from its target of $1, even though Vai is minted based on the over-collateralization mechanism, and that there is sufficient collateral behind it.

Therefore, our plan will also be adjusted according to the supply and demand level of Vai. When supply exceeds demand, the model will control the issuance of Vai; when demand exceeds supply, the model will encourage the issuance of Vai.

At present, the ratio of USD to VAI has exceeded 1.3:1, and Vai is in a state of serious oversupply.

Therefore, we will first initiate a VIP to temporarily stop the minting of Vai to control the total amount of it.

This is just the beginning, we already have a complete solution to keep Vai stable.

The stability of Vai is also a beginning. After Venus’ basic lending business is back on track, we will start to work hard on the expansion of the VAI scene and strive to improve its use cases.

Decentralized stablecoin has always been the most important product in the crypto world. We look forward to the growth of this business, and this will start with the re-peg of Vai.

Venus Team
2021.9.8

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I think September will have a good place in the history of Venus as the month when everything will be resolved.

Strong Team…Strong Community…Venus will be Biggest DefiBank in the whole ecosystem…

We are Venus…

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Glad to read this, as a big VAI holder (not minter, I really bought my VAI when Venus were launched, and close to 1:1 Sad).
Stop minting is welcome and will cut sell pressure, despite not introducing any buy pressure. And today is yet-another all-time-low.

the best practices of real products, the amount and difficulty of code development

Maybe… DAI?
Remember, VAI stands for Venus DAI, and DAI already has the code for stabilization: Stability Fee. Couldn’t you copy-paste their code like you did for Venus overall from Maker?

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This is really good news!

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I am also a big holder and was saddened when they cut the minting fees, since then we have been hitting all time lows almost daily. I would also like to see them introduce the stability fee like in DAI.

:crossed_fingers:

When devs work hard, solutions will follow. So problems from the beginning of XVS will be handled one by one.
By time we will capture interest of big investors, when the protocol works fine and stable. Than it will be the day when we get our patients paid.

Until then strong hodl and accumulation in the dips.

Let the Venus shine my friends……

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VAI is on fire currently, we rose like +10% from the all-time-low
This announcement itself is having positive impact.

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Bit of a bounce up. The order book has moved down on Binance however, 1.05 seems to be the new level for a big bid.

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True, one of a hevy bid and the closer to 1$ peg the bigger bids there be. Everyone will try to sell their VAI coins when they cross the no-loss point because there is no real usage.

People who bought VAI from the open market some time ago had a nice APY in venus vault. Today it is below 2% :frowning:

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Looks like we are back to the old trend.

The anxiety that the team could do something fast to restore the peg has faded…
So the i d i o t s selling VAI for whatever price are back…

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Just doing what they do best talking about talking.

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@Terrence

we already have a complete solution to keep Vai stable

could you please describe this complete solution?

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I would love to hear more on this too.

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From the weekly update:

In VIP-41 we have: 4 commands for TUSD + 1 for cake borrow cap + 1 for VAI minting

So we know, it’ll be in VIP-41

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The week is almost finishing and you still haven’t released the full plan to re-peg Vai! It would be nice to have you delivering your promises within the time frames you present.

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At least they presented the first step: stop the VAI minter.
Also VAI is now above 1:1.20 for the first time in a while.

It’s always good to have the first step presented, but if they expose their intention to release the full plan up to a certain date and then don’t fulfill, it’s usually not a good a sign!

Moreover, this move to 1:1.20 it’s probably not related to any of these measures, since none is already publicly in action but perhaps due to people seeing the opportunity and trying to get in for the profit.

I’m all in favour of these measures and full supportive of the team and all the effort they’ve been putting on this issue. All I’m asking is for more transparency!

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Let’s hope they pull their finger out and get it issued before someone else decides to issue one.

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VIP-41 has been submitted

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