Phasing out BUSD on Hummus
- We’re phasing out BUSD for now for three reasons: (1) There has been a lack of ecosystem demand for and usage of BUSD. (2) To consolidate utilized assets to prepare for the deployment of Aave on Metis. (3). The Metis version of BUSD is issued by Paxos. Paxos is currently under investigation by the SEC and has stopped minting new BUSD as a result.
- Rewards which have been going to BUSD depositors will be redirected to USDC, USDT, and DAI depositors 1:1:1.
- Users should withdraw their assets, swap to other stablecoins, and deploy back into the protocol. BUSD will be placed in withdraw only.
Phasing Out BUSD
Hummus Exchange has begun phasing out (depreciating) the BUSD asset in its main pool. Currently, we are the only dApp on Metis Andromeda carrying BUSD; the Metis ecosystem has yet to broadly adopt it. Additionally, both Chaos Labs and Gauntlet decided not to recommend it for inclusion for the impending launch of Aave on Metis (https://governance.aave.com/t/launch-aave-v3-on-metis/7056/61). As a result, the team sees our protocol’s emissions otherwise going to BUSD depositors as being “empty” emissions going forward.
We will phase out BUSD by reducing emissions, allowing users to swap for other stablecoins or withdraw. Once the pool naturally empties and coverage ratios are near the optimal figure of 100% we will disable swaps and place BUSD assets into withdrawal only.
Generally, the Metis ecosystem is in need of deeper, consolidated liquidity in preparation for the Aave launch, and the Hummus Team wants to ensure our protocol’s emissions are best supporting the success of DeFi’s biggest lending protocol on Metis Andromeda. Additionally, Hummus plans to utilize aTokens to offer even greater stablecoin yields to its liquidity providers. Consolidating TVL into USDC, USDT, and DAI in the main pool will increase these yields significantly, thereby preluding greater liquidity and even more ultra-efficient swaps.
Lastly, we will continue to follow the scrutiny of BUSD-issuer Paxos by government regulators. Hummus will revisit this pool in the future as need demands.