# \[IP\] eUSD Collateral Basket Change Proposal #2

**URL:** <https://forum.reserve.org/t/ip-eusd-collateral-basket-change-proposal-2/920>\
**Category:** eUSD RFC\
**Created:** [September 12, 2024, 4:36am UTC](https://forum.reserve.org/t/ip-eusd-collateral-basket-change-proposal-2/920 "2024-09-12T04:36:01Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![Sawyer](https://dub1.discourse-cdn.com/flex005/user_avatar/forum.reserve.org/sawyer/32/187_2.png) [@Sawyer](https://forum.reserve.org/u/Sawyer)\
**Post date:** [September 12, 2024, 4:36am UTC](https://forum.reserve.org/t/ip-eusd-collateral-basket-change-proposal-2/920/1 "2024-09-12T04:36:01Z")

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**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](https://forum.reserve.org/t/rfc-eusd-rev-share-with-fintech-apps/801) 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)](https://europe1.discourse-cdn.com/flex005/uploads/reserve/original/1X/32dc6bac0030ad32505ec5473e8723bae31d2ae7.png)

_Poll ([view on site](https://forum.reserve.org/t/ip-eusd-collateral-basket-change-proposal-2/920/1))_

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**Author:** ![henry](https://avatars.discourse-cdn.com/v4/letter/h/df705f/32.png) [@henry](https://forum.reserve.org/u/henry)\
**Post date:** [September 12, 2024, 9:23pm UTC](https://forum.reserve.org/t/ip-eusd-collateral-basket-change-proposal-2/920/2 "2024-09-12T21:23:21Z")

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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.

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**Author:** ![mattimost](https://dub1.discourse-cdn.com/flex005/user_avatar/forum.reserve.org/mattimost/32/258_2.png) [@mattimost](https://forum.reserve.org/u/mattimost)\
**Post date:** [September 12, 2024, 9:28pm UTC](https://forum.reserve.org/t/ip-eusd-collateral-basket-change-proposal-2/920/3 "2024-09-12T21:28:12Z")

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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.