SIP-5 Reduce A factor from 1000 to 100 for swUSD Pool

Proposal:

Reducing the current amplification factor (A) from 1000 to 100 would help bring the pool closer to the peg, more evenly distribute the stable assets within the pool and encourage depositing more DAI into the pool.

Should the A factor be changed from 1000 to 100?

Options:

  • Yes
  • No

Off-chain Vote:
https://snapshot.page/#/swerve/proposal/QmYFBXmEPNKKEHCvgJekLYK846tV6cG2Z7Tf91BBoRoXHB

Is it possible to to explain the downside/risks of changing the A factor? This would help voters make a more informed decision.

There topic has previously been discussed at length on the Curve forum, please take a look for better understanding: https://gov.curve.fi/t/discussion-change-susd-v2-pool-a-factor-from-100-to-200/573/13?u=notreallyleg