As discussed already in the V0 post on this topic (here), we suggest here the way forward to disable Native DAI support on Hashstack. This document corresponds to the current V1 mainnet (app.hashtack.finance).
The discussion here corresponds to this DAI token.
DAI Exposure
At present, we have the following Exposure on DAI. With total supply as 14k, borrow as 937 and total DAI exposed assets held by protocol as 1131 DAI. DAI exposure is more than borrow due to various users spending their loans into DAI or related assets (e.g. Jedi DAI/USDT pool).
Recommended approach
- Pause new supplies, borrows and spends on DAI token or related assets
- We define a force closure date as May 31st 2024 or 1 month before regenesis. Whichever is earlier.
- Announce to community to close all DAI related borrows and spends before force closure date. Any spends on the following tokens to be reverted:
2.a. Swaps - DAI
2.b. Liquidity Pools - Jediswap - DAI/ETH, USDT/DAI, USDC/DAI
2.c. Liquidity Pools - MySwap - DAI/ETH, DAI USDC - After the force closure date, protocol shall repay borrows that borrowed or used DAI token as collateral. Any un-used collateral and excess tokens received during repay will be transferred to borrower. This shall allow all DAI suppliers to withdraw their supplies.
- Further, protocol revert borrows spent into DAI exposed assets automatically. This will ensure borrows are repayable even after regenesis and will keep supplies intact.
Step 1 of the approach will be executed by 22nd Feb.
We want to hear from the community for any better approaches/feedback.