Lower the cache size to allow sUSD swaps
From mStable protocolDAO
A number of users have highlighted an issue with mint/swap/redeem. When trying to swap ‘out’ sUSD, and you will get an error “Error during estimation execution reverted: There is not enough liquidity available to redeem”.
This is due to Aave not having enough available sUSD to withdraw from its lending market: https://app.aave.com/markets.
The mUSD cache keeps a certain proportion of each bAsset in raw form (e.g. sUSD, not on Aave), to make mint/swap/redeem cheaper with that asset. When the cache goes to 0, it tries to reset itself to x% of total supply (in this case $1.6m USD) in raw sUSD by redeeming asUSD (read more here). There is not enough available liquidity to do this at the moment on Aave.
This is nothing to be concerned about. AAVE are planning to disable borrowing, so this will mean that loans gradually get repaid and liquidity frees up.
In the short term we propose a significant reduction to the size of our cache size so that most withdrawals are unblocked.
Setting the cache to 2% would free it up and allow it to operate under relatively normal circumstances, keeping between 0-740k USD in the cache at any one time.
Should we set the cache to 2% to free up the basket?
| Voter | Cast Power | Vote & Rationale |
|---|---|---|
 0xb9c8...9C2497 | 103,901 | Yes, unblock sUSD |
 0x365a...6e1Df7 | 72,410 | Yes, unblock sUSD |
 0x2Ee8...3bB9cA | 31,600 | Yes, unblock sUSD |
 0x43CE...1E9558 | 13,309 | Yes, unblock sUSD |
 0xe594...b3fF64 | 8,745 | Yes, unblock sUSD |
VOTE POWER
Proposal Status
- Mon January 25 2021, 05:00 pmVoting Period Starts
- Tue January 26 2021, 05:00 pmEnd Voting Period
Current Results
1-Yes, unblock sUSD
241,212.712