Ryan Sears [email protected]
The Kolibri peg continues to remain out of equilibrium, even after the previous adjustment (KIP-014) went live and until the KSR is completed and adopted, the stability fee is still our most powerful tool to try to push the peg back into place.
Therefore, since we’re still off peg by a significant amount, this KIP proposes another upward adjustment of 3.5%, bringing the stability fee to 25%.
Until the KSR is deployed and adopted, the stability fee is the best tool at the DAO’s disposal to help push the Kolibri peg back into place.
The above graph outlines the EMA(10 days), and the vertical line is where KIP-014’s adjustment went live. The peg continues to drift upwards despite it going live, implying that whales don’t seem to care about the adjustment, and most loan holders are unwilling to repay their loans at current rates.
This is a simple adjustment, carried out through the governance portal. If it passes the stability fee will be 25%, if it fails it’ll remain at 21.5%.