CyberConnect releases an emergency proposal to unlock 10.88 million CYBER to address the multi-chain liquidity balance issue
ChainCatcher message, CyberConnect has released an urgent proposal [CP-1], which suggests taking the following 3 steps to ensure liquidity balance of CYBER across the Ethereum, Optimism, and BNB Chain networks.
First, the foundation has deployed the CYBER-ETH, CYBER-BSC, and CYBER-OP bridges supported by LayerZero's ProxyOFT.
Second, the CYBER unlocked by the Cyber DAO and its treasury will be used to provide liquidity for such bridges. To avoid excessive risks from any bridge, we plan to initially retain 25,000 CYBER-ETH, 25,000 CYBER-BSC, and 25,000 CYBER-OP in the bridges, and dynamically adjust the liquidity provided. All unlocked CYBER in the treasury, totaling 7,000,000 CYBER-BSC and 3,888,000 CYBER-ETH, can be used to maintain liquidity for the bridging services. Providing bridging services will not affect the total supply of CYBER.
Third, when there is an imbalance of CYBER liquidity between networks, the foundation will need to burn and mint CYBER to restore the balance of CYBER in the treasury. For example, if within the treasury, CYBER-ETH is exhausted while CYBER-BSC and CYBER-OP together have 10,888,000 CYBER, the foundation will destroy some CYBER-BSC and CYBER-OP to mint an equivalent amount of CYBER-ETH.
Currently, the proposal has received support from 61,000 CYBER votes, accounting for 99.99% of the total votes. Improving cross-chain liquidity issues means that the price differences of CYBER between trading platforms may gradually be "arbitraged" by traders.
The team explained that this proposal vote is a one-time exception, and considering the urgency and time sensitivity, the proposal will not adhere to the DAO's 7-day voting period policy, with voting ending today at 16:19.
As of the time of publication, the price of CYBER on Binance is reported at $13, while on Upbit, the price of CYBER is reported at 0.00121892 BTC, approximately $32.52, with a premium rate rising to 150.154%.
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