We need a broader perspective to understand the entire situation.
- ZUSD deposits in the BabelFish aggregator were paused when they accounted for over 99% of all stablecoins within BabelFish.
- The dominance of ZUSD prompted Zero users to withdraw other stablecoins from the aggregator.
- This took place before the introduction of Balancing Curves.
Currently, stablecoin distribution in the BabelFish aggregator seems more even, but there’s a clear decline in total liquidity.
One of the reasons could be that XUSD trading pairs are solely on alpha.sovryn.app.
The new Sovryn web app doesn’t facilitate any direct XUSD usage for trading, lending, or AMM.
Furthermore, it’s not straightforward to access alpha.sovryn.app from the new web app, complicating user engagement. Many users might not even realize how to use XUSD on Sovryn. New Sovryn web app primary focuses on DLLR - compared to Alpha - it is very limited.
Without drawing in external stablecoin liquidity to Rootstock, a comparable issue might emerge, albeit potentially less severe, as there are not Balancing Curves in place.
It’s clear that for Zero users aiming to shift to more mainstream stablecoins, BabelFish is crucial. However, the available ETH and BSC stablecoin liquidity presents a bottleneck.
I think that with taking all this into considersation, there are couple of things that need to happen first.
That is why I would suggest delaying this vote.
@capitalist42 - I would love to have some feedback from You.