PxUSD-Oct2020 Rollover Plan

CY Tan

Published in

PERL.eco

4 min readOct 26, 2020

TLDR

Next pxUSD will be effective for 5 months until the end of March 2021.
Please rollover your liquidity to the new pool before October 29th (or wait until settlement) as the instructions below.
There will be a 3-day price request period after the expiry for settlement. All contract functions will be frozen. Rollover to the new pool prior to expiry to avoid this.
There will be an overlapping of 96 hours (Oct 26, 23:00 to Oct 29 23:00 UTC) that both Oct2020 and Mar2021 pxUSD pool will be receiving PERL rewards. Please rollover to the new pool during this period.
WARNING: Make sure to check the price of pxUSD when you’re swapping between both assets as it will greatly affect your yield! It is almost always better to just wait for settlement instead of selling pxUSD below 1 USD as we are very close to the settlement date.

PerlinX pxUSD Rollover

A cumulative total of 301.39k pxUSD has been minted and a cumulative total of 35.35 million PERL has been locked as collateral since launch. This pilot is to get users to familiarize with synthetic assets on PerlinX and prepare users for more future pxAsset (this can be complicated) that we will be launching.

The next pxUSD will be effective for 5 months and it will expire at the end of March 2021. This will greatly enhance user experience as token sponsors will not have to go through the rollover process as frequently. Borrowers will also have a longer period to repay their debt and improve platform stickiness as lenders will need to lock up collateral for a longer period of time.

Rollover Plan for pxUSD-Oct2020

The existing pxUSD-Oct2020 token expires at 24:00, October 31st 2020 UTC. In order to encourage existing liquidity providers to redeem their assets and move to the new pool, we have scheduled the following actions:

October 26th, 23:00 UTC:
Liquidity rewards begin on the pxUSD-Mar2021 pool.
October 29th, 23:00 UTC:
Liquidity rewards end for the pxUSD-Oct2020 pool.
October 31st, 24:00 UTC:
The pxUSD-Oct2020 token will expire.

Please rollover to the new pool during this period to receive continuous rewards.

What happens when a token is expired?

When the token expires, there will be a 3-day price request period for UMA token holders to vote on the price at which the expired token should settle on. All contract functions will be frozen within the price request period. Token sponsors with outstanding pxUSD and locked collateral will be unable to redeem or withdraw. In order to prevent missing out on 5-days worth of rewards, token sponsors should roll their capital into the next pool.

If you do not wish to go through the rollover process, you may choose to wait until the price request is settled and redeem your PERL at the price voted.

Rollover Steps for Sponsors who MINTED pxUSD

(A) If you have provided liquidity in the pool:

Withdraw your liquidity from the PERL/pxUSD-Oct2020 pool.
Follow the redeem guide to redeem your collateral by repaying your loan.
Repay all of your pxUSD debt to the exact amount. If your balance is off you may need to swap some PERL to pxUSD-Oct2020.
Withdraw all of your collateral.
Repeat the steps in the minting guide, this time for the pxUSD-Mar2021 contract.
Stake into the new PERL/pxUSD-Mar2021 pool.

(B) If you have sold your pxUSD for PERL:

Option 1: You may choose to purchase pxUSD from the pool to repay your debt.

Buy the exact debt amount of pxUSD in the PERL/pxUSD-OCT2020 pool.
Repay your debt to redeem your collateral
Mint pxUSD in the March 2021 contract
Stake into the PERL/pxUSD-MAR2021 pool.

Note: Proceed with this option with caution! The price of pxUSD in the pool will greatly affect your yield. If it is trading at a price higher than you first sold it, please consider Option 2.

Option 2: You may wait until the price request is settled and redeem your PERL with your expired pxUSD.

Wait until the price request is settled.
Redeem PERL with pxUSD at the price voted.
Mint pxUSD in the March 2021 contract.
Stake into the PERL/pxUSD-MAR2021 pool.

Rollover Steps for liquidity providers who PURCHASED pxUSD

Withdraw your liquidity from the PERL/pxUSD-Oct2020 pool.
Swap all pxUSD-Oct2020 to PERL.
Navigate to the new PERL/pxUSD-Mar2021 pool and swap 50% of your PERL into pxUSD-Mar2021.
Stake into the new PERL/pxUSD-Mar2021 pool.

Alternatively, you can wait for the price request process to settle and redeem PERL with the expired pxUSD you have.

Please note that while swapping for PERL and pxUSD-Mar2021, you should be mindful of the trading price. Ideally, you’d want to sell your pxUSD-Oct2020 at a higher price and buy pxUSD-Mar2021 at a low price.

Rollover to the new pool here: https://app.perlinx.finance