Increasing Stability Fee in Pando Leaf

In 30 days on October 1, 2022, Pando Leaf will increase the stability feeopen in new window 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 liquidationopen in new window. 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 docsopen in new window for general understanding, contact us at pando@fox.one, or post your questions in our communtiesopen in new window.

Updated at: