As we are aware that Maker DAI will not be supported on Starknet post Regenesis (read here), Hashstack needs to prepare for the same. At present, Hashstack has DAI exposure in two platforms:
- legacy.hashstack.finance - V0 (legacy mainnet)
- app.hashstack.finance - V1 (current mainnet)
Within each of these platforms, DAI is used as supply, borrow and secondary markets. We propose ideas to reduce DAI exposure on legacy platform in this post (Proposal for V1 mainnet will be added soon):
1. V0 - Legacy
As shown below, these are the DAI exposures on Legacy mainnet. Though very small, we decided to take community’s opinion before we take an action.
The suppliers will not be able to withdraw their DAI unless all DAI borrows are closed. Inspite of multiple reminders to close all borrows on legacy, some positions are still open. Considering this situation, we propose two ideas:
1. Force close
Give one month notice to users and do the following actions on exposed borrows:
1.a. Force liquidate the borrows on DAI and send the received remaining assets to borrower. This will free up DAI for suppliers to withdraw
1.b. Force revert spend borrows that have spends in DAI exposed assets. Once we revert spend, new spends on DAI will be disabled. Hence preventing new exposure to DAI.
2. Leave the borrows un-touched. This will expose suppliers with default risk.
Among both these options, option 1 seems sensible to us as it will lead to minimal loss to both suppliers and borrowers where as in option 2, supplier may lose their entire supply.
However, this is open for discussion and we want to hear your thoughts.
