Summary
This proposal Increases the redemption and issuance throttle for eUSD
Abstract
The proposed proposal, if enacted, would increase the issuance throttle amount from $250K to $4M and the issuance rate from 5% to 10%. This proposal also increases the redemption throttle amount from $2.5M to $5M. This would allow for increased movability while holding eUSD.
Problem Statement
In discussions with large minters, the feedback indicates that the current issuance and redemption throttle amount is too limiting. Keeping the minting and redeeming at current levels is an inconvenience to the larger minter as they have to mint in several transactions in order to reach their desired holding.
Rationale
By increasing the issuance and redemption throttle, eUSD will be able to meet market demand while remaining in line with safe limits.
Risks
There is novel smart contract risk where if an exploit were to occur the larger redemption throttle amount could be leveraged for profit by the attacker. However, The Reserve Protocol has undergone 7 audits and the probability of an exploit remains low. For issuance, the throttle is meant to protect from an attacker minting while collateral is mid-default and benefiting from RSR-funded recapitalization. The probability of a default is low, but not 0. These changes would result in improved user experience while maintaining levels of safety and security.
- Yes, I am for this proposal
- No, I am against this proposal