✅ [RFC] Remove mUSD from the Iron Bank

Summary

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.

Abstract

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.

Motivation

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.

Pros

  • Reducing risks
  • uncertain future of Cream Finance

Cons

  • slightly less yield on the mUSD in the Feeder Pool
3 Likes

Supportive- mstable is best known for being highly secure and while the iron bank integration is great, it’s also not utilised to its potential, adding unnecessary risks to the system.

1 Like

I’m fine with this as well.

1 Like

Yep. all for it, thanks for getting this kicked off @Dimsome

1 Like

To give a little bit of background info of why we waited with his one a bit:

  • Iron Bank was unaffected, therefore there was no immediate threat.
  • We were initially considering replacing the Iron Bank integration with the Rari Fuse Pool but we realized that we needed to evaluate the risks with this isolated market first much more especially concerning the imAssets (interest-bearing mAssets) and we didn’t have the resources to do so up to this point.

So in the interim moving out is probably a good choice until we can investigate this in a more focused manner.

1 Like

Definitely in favor of this, as I believe the mUSD can be used more effectively in the ecosystem, and the recent hack on top of the previous hacks has made me very doubtful around the entire project as a whole.

Onwards!

1 Like

I’m in favor as well. Definitely not worth the risk at this point.

Moving this to MIP, posting soon