It has now been over two months without the ability to withdraw funds from xcdot, which has created a significant challenge for users and the protocol as a whole. To help address the ongoing liquidity issues, I propose that incentives for xcdot be increased.
Currently, incentives remain below 8.5%, which is not competitive enough to attract new liquidity providers. By raising the incentive rates, we could encourage additional participation, restore confidence, and improve the overall health of the XCDOT market within Moonwell.
I would like to hear the community’s perspective on whether an adjustment to the incentive structure could serve as a short-term measure to strengthen liquidity while longer-term solutions are being developed.