[CONTRACTS] - Stabilization Automation

[0x4007]

Definitions

collateral treasury - where we store the Proxy Yield Aggregator yields.

On-Swap Top-Up Strategy

Leveraging transfer hooks, we:

1. monitor the uAD-3CRV market for sells below 1.00 TWAP
2. automatically deposit single sided 3CRV liquidity from the collateral treasury.

Optimization (Removal of Single Sided Liquidity)

I wonder if we should remove some uAD liquidity to make it less burdensome on our collateral treasury balance?

A. Should this ratio be 1:1 e.g. we remove 1 uAD and add 1 3CRV during this topup?
B. Should we make this ratio dynamic based on the amount of 3CRV market liquidity compared to collateral treasury?

• 100000 'extra' uAD in market ('extra' meaning that if we remove all of this, then the price will be 1.00) : 1000 3CRV in collateral treasury calculation is (100000/100=100) yields withdrawal of 100 uAD and deposit of 1 3CRV?

C. What's the optimal formula?

This way, instead of a burn disincentive there is just a higher gas fee disincentive to sell.

Further Ramblings

• We should have the collateral treasury ideally be put to work. Should it just be in our Proxy Yield Aggregator or should we leave this capital idle?
• Imagine whitelisting other markets and having this just-in-time top-up tech exist across all major markets to truly have an enforced pegged stablecoin across the entire ecosystem!

[hpiyankov]

This can work, but gut feeling says it can be exploitable, I just need to figure out how.

The question is, do you need this researched now? Shall we first get treasury/traction before figuring out how to spend it :)

[0x4007]

Context: these are the stabilization mechanics, in order of "line of defense" taken from our pitchdeck. Basically we should intelligently combine the addition of collateral+removal of SSL