Increasing Stability Fee in Pando Leaf
In 30 days on October 1, 2022, Pando Leaf will increase the stability fee to mint pUSD against the range of the supported collaterals to better adjust to the market situations.
Specifically, the changes will be:
- Increase the BTC Stability Fee from 1% to 3.5%.
- Increase the sETH-BTC Stability Fee from 1% to 3.5%.
- Increase the ETH Stability Fee from 1.5% to 3.5%.
- Increase the EOS Stability Fee from 1.5% to 3.5%.
- Increase the XIN Stability Fee from 1.5% to 3.5%.
- Increase the DOGE Stability Fee from 1.5% to 3.5%.
- Increase the BCH Stability Fee from 1.5% to 3.5%.
- Increase the LTC Stability Fee from 1.5% to 3.5%.
- Increase the FIL Stability Fee from 1.5% to 3.5%.
- Increase the ZEC Stability Fee from 1.5% to 3.5%.
- Increase the DOT Stability Fee from 1.5% to 3.5%.
- Increase the UNI Stability Fee from 1.5% to 3.5%.
- Increase the MOB Stability Fee from 1.5% to 3.5%.
What does this mean to you?
After the increase in the stability fee takes effect, borrowing pUSD will become more expensive. You will then need to be paying 3.5% annually on any pUSD you have borrowed instead of at the current rate (1% or 1.5% annually, dependent on your collateral). Between now and then, you can pay down debt at the current lower rate if you do not want to continue with a 3.5% stability fee after the adjustment. Please be noted that if you choose not to repay your debt, the new stability fee will increase your accumulated debt balance and thus reducing your collateralization ratio and may putting your debt at higher risk of liquidation. It's advised that you check your debt's collateralization ratio and make sure it will be in a safe range to avoid liquidation of your colleteral.
Getting help
If you experience any issues with your vault(s) or have any questions regarding using Pando Leaf, you can check our docs for general understanding, contact us at contact@pando.im, or post your questions in our communties.
The information contained in this article is for informational purposes only and does not constitute financial, investment, or other professional advice. The views expressed in this article are those of the author and do not necessarily represent the views of the company or organization they work for or Pando. Any investment decisions made by the reader should be made after consulting with their own financial advisor and conducting their own research. The author and the company or organization they work for and Pando will not be liable for any financial losses incurred as a result of reliance on the information contained in this article.