Buy back and Born bot
German translation of this article: DusdBurnBot DE
With DFIP 2211-B the implementation and use of this action to re-peg the DUSD got proposed. The voting came out with 561 votes yes against 205 no votes in favor of the burn bot.
Link to Github: DFIP-2211-B: Use currently free DFI block rewards to maintain a constant buy pressure on dUSD #228
Mechanics of the bot
The “buy back and burn bot” collects DFI, that are minted as block rewards but were not used so far (previosly buned directly), swaps them to DUSD and burns them afterwards. The swap happens via the DFI-DUSD liquidity mining pool on the defichain DEX.
With the bots swap from DFI to DUSD there is an icreasing demand for DUSD and the pool will shift. This is the disired effect, because before using the bot there was a huge discount for DUSD (one DUSD was worth less than 50 Dollar cent in times). The DUSD that the bot receives from the swap are burned directly and therfore taken out of the system. This is a decrease of DUSD supply and therefore another effect for a rising DUSD price.
GoLive and problems
It was planned, that the buy back and burn bot goes live with the Grand Central Update (Version 3 of the blockchain implementation) on the 8th of December, 2022. But there were issues with running the bot that caused several chain splits. Therefore the use of the bot got deactivated temporarily. The DFI of the previously unused block rewards are accumulated on this address in the meantime (Link to defican.live: https://defiscan.live/address/df1qlwvtdrh4a4zln3k56rqnx8chu8t0sqx36syaea)
With the next hardfork „Grand Central Epilogue“ (Version 3.2.0, from block 2574000, planned for 10th of January, 2023) the problem should be solved and the bot will get activated.