Dear alpacas,

Pursuant to AIP-25’s resolution, this article will detail the sunsetting process for AUSD, and the migration for batch#1's assets.

🌅AUSD Sunsetting

In preparation for the migration of lending assets from AF1.0 -> AF2.0, we will sunset AUSD. Please read the planned actions below:

For users who hold AUSD positions

You should repay the entirety of your AUSD debt and close out your positions. If you do not have enough AUSD balance in your wallet, you can acquire them via two methods:

  • Buy AUSD from the Ellipsis pool here. (market rate, low liquidity)

  • Buy AUSD from our stableswap module here. ( Fixed rate of 1 BUSD : 1 AUSD)

For users who hold AUSD balance (but without debt positions)

Once users start closing out their AUSD positions, you will be able to swap AUSD back to BUSD at 1:1 ratio via our stableswap module. Depending on when the position holders pay back their debts, you might have to wait until after October 17th (when all the remaining positions will be force-closed) before swapping out of AUSD.

Any remaining positions after October 17th will be force-closed. Force closing will work in the following way:

  • User’s collateral is sold via stableswap (BUSD will be converted 1:1, while USDT and BNB collateral will first be sold into BUSD and then converted 1:1 via the stable swap module)

  • Any remaining collateral will be left in the form of ibTokens for users to claim.

🚆 Batch#1 Migration

Migration of Batch#1 assets will be executed on October 19th. The three assets in this batch are: BTCB, ETH, and USDC.

  • All remaining LYF positions borrowing BTCB, ETH, and USDC will be closed on October 19th.

  • All lending assets will be migrated to AF2.0 lending pools.

  • Users will be able to claim ibTokens corresponding to their assets after the migration is completed.

To keep up to date with our major announcements, follow us on our Twitter!

AUSD sunsetting & AF1.0 Batch#1 Migration Plan was originally published in Alpaca Finance on Medium, where people are continuing the conversation by highlighting and responding to this story.