Forum Post: https://forum.inverse.finance/t/transition-liquidator-grant-program-rewards-from-dbr-to-dola/510

Summary

This proposal aims to adjust the reward structure of the Liquidator Grant Program by setting the DBR allowance to zero and issuing a new DOLA allowance. All rewards under the program will now be denominated and distributed in DOLA in place of DBR.

Motivation

• Stability of Rewards: DOLA offers a stable value, ensuring liquidators receive rewards with consistent purchasing power, unlike DBR, which may fluctuate in value.
• Alignment with Treasury Management: Denominating rewards in DOLA aligns with broader treasury practices and simplifies accounting.
• Liquidity Considerations: Transitioning to DOLA increases liquidity and usability for liquidators, making the program more appealing.

Specification

1. DBR Allowance Update:

• Reduce the current DBR allowance for the Liquidator Grant Program to zero.

2. DOLA Allowance Creation:

• Issue a new DOLA allowance of $5,000 to fund the program, equivalent to the previous DBR allocation.

3. Reward Distribution:

• Adjust the reward tiers:
  • Standard Liquidations: Up to $250 in DOLA.
  • Exotic Collaterals: Up to $500 in DOLA.

4. Program Operation:

• No changes to the program’s operational structure or reward eligibility criteria.

On-Chain Actions

• Set Risk Working Group’s DBR Allowance to “0”
• Set Risk Working Group’s DOLA Allowance to “5000”