{"posts":[{"id":19227,"title":"IBCO closing proposal","excerpt":"OVER is proposing to end its Initial Bond Curve Offering (IBCO), two years and three months after launching. Why now? In April 2022 we outlined the opportunity to alter the CW parameter of the IBCO. The goal was to make the OVR token more volatile and burn an additional quantity of tokens. You can read […]","content":"

OVER is proposing to end its Initial Bond Curve Offering (IBCO), two years and three months after launching. Why now?<\/span><\/p>\n

In April 2022 we outlined the opportunity to alter the CW parameter of the IBCO. The goal was to make the OVR token more volatile and burn an additional quantity of tokens. You can read that proposal here: <\/span>https:\/\/www.overthereality.ai\/blog\/ibco-voting-proposal\/<\/span><\/a>.\u00a0<\/span><\/p>\n

However, in consideration of the downward trend in market conditions and the fact that the massive liquidity of the IBCO offered additional protection to the token price, we did not proceed with the voting process.<\/span><\/p>\n

We avoided changing such a position forecasting future market trends, yet lately, the depeg of USDC and the implied DAI depeg<\/a> have made it apparent that the potential risks connected to Maker DAO governance on the collateral backing DAI are very real.\u00a0<\/span><\/p>\n

We believe it\u2019s not worth getting exposed to the risk of Maker DAO governance decisions with the IBCO collateral anymore. Because of this, we\u2019re proposing to definitively close the IBCO.<\/span><\/p>\n

\u00a0<\/p>\n

Advantages and disadvantages of the IBCO<\/b><\/h2>\n

After two years of flawless operation in bull and a bear markets, the advantages and disadvantages of the IBCO model have become clear:<\/span><\/p>\n

Advantages<\/span><\/h3>\n