[IP] eUSD Collateral Basket Change Proposal #2

Electronic Dollar (eUSD) eUSD RFC
1

Summary

Remove low yielding assets from the collateral basket and improve gas efficiency.

Current Basket:
25% Comp v2 USDT
25% Aave v3 USDC
25% Comp v3 USDC
25% sDAI

Proposed Basket:
33% sDAI
33% Aave v3 USDC
33% Comp v2 USDT

Abstract

The proposed proposal, if enacted, would remove Compound v3 USDC and increase the remaining 3 assets allocation from 25% to 33%.

Problem Statement

Currently the yield from the Compound v3 USDC part of the basket has dropped. Minting costs are high with 4 assets in the collateral basket.

Rationale

The proposed proposal, if enacted, will increase the yield profile, and reduce the cost of minting. Both Sentz and Ugly Cash are participating in the Rev Share proposal and would benefit from an increase in the yield profile of eUSD.

Risks

The USDC exposure of the basket will drop from 50% to 33%. The USDT and DAI exposure of the basket will increase from 25% to 33% each.

Untitled (200 x 200 px) (1)

  • Yes, I am for this proposal
  • No, I am against this proposal
0 voters
1 Like
2

Thank you, Tom.

This proposal looks good and it would be even better if we could move the USDT to Compound V3, which I think would involve porting or extending the Compound v3 asset plugin for USDC to cover USDT as well.

3

Agreed - thanks for proposal, makes sense to me.

The Compound v3 USDT plugin isn’t available at this time but will be available in future.