Author: Frank Olson
Date: March 21th, 2024
Summary
If this proposal passes, the following changes will occur within the Prisma Protocol:
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Sunsetting the original LST Vaults, itemized in this passed proposal.
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Sunsetting the current LRT Vaults, itemized in this passed proposal.
Motivation
Since the community approved to deprecate the original LST Vaults and current LRT Vaults, we would like to propose to sunset these Vaults, as stated in the blogpost, to motivate users to migrate to the new Vaults for LSTs and LRTs.
Specification
We propose to start sunsetting the deprecated LRT Vaults 4 days after the enactment of [PIP-032], followed by sunsetting the deprecated LST Vaults 7 days after the enactment of [PIP-032].
Sunsetting is initiated following a on-chain governance vote and has the following implications:
- The interest rate for the sunset vault is increased to 50% APR. This high interest rate is intended to incentivize the repayment of loans backed by the sunset vault.
Benefits
By sunsetting the deprecated vaults we can increase the interest rate to 50% to motivate users to migrate to the new and improved vaults.
Next Steps
A snapshot will be scheduled to formalize consensus. Upon approval, we will prepare the on-chain vote.
For more info please read our recent blogpost: Important Vault Updates — Prisma Finance