[VIP] Re-enable VAI minting by borrowing


Following the recovery of the VAI peg, this VIP enables VAI minting by borrowing.



Following the recovery of the VAI peg, this VIP enables VAI borrowing by setting a borrowing cap at 10M (i.e. could mint until there is 10M VAI in totalSupply, currently ~4M).


As evidenced by the chart below, thanks to the work done those last few months, the peg is now in a way better shape with a tracking error around 25bps. Adding more liquidity as proposed should reduce the error below 10bps.

The VAI PSM is starting to replenish after having lost its initial allocation. The new interest rate curve saw little loan repayments, but still enough and the trend is encouraging.

Therefore, there is no reason in our view to delay VAI borrowing anymore.

We are monitoring the situation and might propose interest rate changes to optimize both the peg and Venus revenues while keeping stability and predictability for borrowers as much as possible .


Modification of this VIP:

  • mintCap: 10M (from 0)

Risk Analysis

  • Significant borrowings could impact the price of VAI
  • BUSD is still used as collateral for some legacy VAI borrowing

Read the Steakhouse disclaimers


I can’t wait to see VAI alive again! Let’s go!

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this will make the difference !!!

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