DEIv2 & how to clear old debt.

Abstract

Deploy a new DEI that is 95% backed by USDC, use the outstanding 20m USDC from the old DEI, and offer every user a flat migration level.

Reason

It’s clear that only with a fully intact and backed DEI, DEUS can generate revenue needed to clear up past debt. Free circulating DEI is jeopardising current and future profits until health is installed.

By forking and deploying a new DEI we can inherit those measures and generate profits immediately. Every newly minted DEI can already generate profits needed to repay debts & enhance health until v3 is fully launched.

We are targeting a 95% USDC backing for the new DEI after redeployment.

But for minting we will require 100% USDC, until debt is repaid.

We will incentivize Pools on multiple DEXs in order to get the required demand in order to clear the bad debt.

Currently there is around 25million DEI remaining in Wallets, with a 50/50 redeem to bond ratio currently this would mean this following Debt is remaining:

$29,214,269.37 USDC

~9.5m to Scream lenders.

~20m to DEI bonders.

At 4 cents segniorage per newly minted DEIv2
605,221,182.66 open interest on DEIv2 is needed

At 10 cents segniorage per newly minted DEIv2
242,088,473.07 open interest on DEIv2 is needed

When someone mints the newly deployed DEI for yield farming or using the v3 Synthetics plattform they will need to deposit 1 USDC for 1 new DEI

95c of that USDC will be deposited as collateral for new DEI
4c “segniorage” will be deposited into a contract that clears bad debt.
1c would be used to buyback DEUS and burn it.

V3 profits and other protocol revenue will be ontop.

Hold DEIv1 until there is protocol-surplus in USDC backing to swap it into bDEI and then redeem it for DEIv2.

Swap DEIv1 into vDEUS and wait until DEUS reaches 250$

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