The mUSD from both Feeder Pools (mUSD/GUSD and mUSD/BUSD) is allocated in the Iron Bank. In the light of recent events around the exploit of Cream Finance, I would like to propose to remove this integration and move the mUSD into a dummy integration contract for the time being.
The mUSD from both Feeder Pools (mUSD/GUSD and mUSD/BUSD) is currently supplied to the Iron Bank and earns at the time of writing around 0.18%. Therefore it seems that the additional risk caused by this integration doesn’t warrant this APY earned from this pool - it’s not a significant amount to justify this.
Since the smart contracts for the feeder pool cannot move back from integration into no integration, we have to replace the integration contract and migrate the basket assets to it. This would be just a dummy integration that simply holds the funds and does not supply them to any platform.
Since the exploit of Cream Finance and the uncertain future around it, we should reconsider the Iron Bank integration. The very low yield that is generated by this integration does not warrant the increased risk. Our shared value as a protocol is a security-first approach - this proposed measure would therefore be in line with it.
- Reducing risks
- uncertain future of Cream Finance
- slightly less yield on the mUSD in the Feeder Pool