[Nexo Institutional Vault] Collateral Onboarding -- Update --

After several weeks of working with the Nexo team to implement the IV and the migration, we (mandated actors and Nexo) think it is best for both parties to modify the current proposal.

When we started with the proposal, Nexo’s position was about 400M DAI, and we thought they would reach out to the 1.5B DC progressively through the following six months after passing the executive vote. In that scenario, it made sense to propose a reduction on the SF for every 100M DAI minted and the OF if they decided to reduce their position. The reality is that after the Nexo poll passed, they have minted about 1.5B DAI using only the ETH-A Vault (with the incentive of being able to migrate their positions and have access to the IV).

While PECU was planning the migration, we realized that having two ilks for Nexo is riskier than just relying on the automation of one vault, at least in this first iteration of the IV.

Because of that, we think it’s better to have just ETH as collateral for the Nexo IV. We (RISK, RWF, PECU, and GRO) are currently working on the second version of the proposal, which we will share with the community in the following days.

3 Likes

Hi @Nadia

thanks for the update!

Will the new proposal also include adjusted SFs? A lot has changed in the last months - maybe worth to reconsider this parameter as well.

cheers
tim