Summary
This proposal announces the submission of sUSDS as collateral on the following vaults:
- Flagship ETH on Ethereum Mainnet
- Flagship USDC on Ethereum Mainnet
- Flagship USDT on Ethereum Mainnet
Along with setting the supply caps for all sUSDS-related markets.
Rationale
Following the rebranding of MakerDAO to SkyEcosystem which includes the introduction of new stablecoin - USDS, and Savings USDS (sUSDS), we aim to deploy new sUSDS markets to be used alongside existing sDAI markets on Morpho Blue.
Considering the widespread adoption of DAI stablecoin and the TVL of the DAI Savings Rate (currently ~40% of DAI sits in DSR), as well as the incentives that will be put in place in order to bootstrap the adoption of USDS and sUSD in a form of a slightly higher savings rate for sUSDS than the one available for sDAI holders (starting from 0.25% difference, i.e. 6.25% for sUSDS vs 6% for sDAI holders), we expect that liquidity will gradually migrate to the sUSDS pools, and thus propose capturing this demand by adding sUSDS as collateral to our vaults on Mainnet.
Overview of USDS and sUSDS
The Sky Ecosystem has introduced USDS as its new stablecoin, taking the place of DAI and allowing seamless 1:1 conversions from both DAI and USDC. In addition, users can now access the traditional Savings Rate, which used to apply to sDAI, through sUSDS.
USDS implementation: 0x1923DfeE706A8E78157416C29cBCCFDe7cdF4102
USDS token: 0xdC035D45d973E3EC169d2276DDab16f1e407384F
sUSDS token: 0xa3931d71877C0E7a3148CB7Eb4463524FEc27fbD
sUSDS implementation: 0x4e7991e5C547ce825BdEb665EE14a3274f9F61e0
DAI-USDS converter contract: 0x3225737a9Bbb6473CB4a45b7244ACa2BeFdB276A
After the launch of USDS, sUSDS, and SKY tokens (estimated time for launch - September 17, 2024) the minting of USDS will be available on spark.fi interface, while the conversion between USDS and DAI will be available on sky.money official website.
Contract Upgradability
It is important to mention that the USDS contract uses the UUPS (Universal Upgradeable Proxy Standard) pattern to enable upgradeability. At launch the USDS will not have a freeze function implemented, although the USDS contract will be upgraded to include a freeze function at some point in the future (months, or even years away, depending on the growth trajectory of USDS), for regulatory reasons, to foster growth and improve on scalability by tapping into the RWA/tokenization opportunities.
However, as explained in the forum post by MakerDAO co-founder, this will be a subject of a decentralized governance vote.
Liquidity Considerations
Given the ongoing migration of PSM to LitePSM, there is already 1.4b of available liquidity in LitePSM (as can be seen on the BlockAnalitica’s LitePSM dashboard). This indicates that there will be significant amount of liquidity available to USDS stakers (sUSDS holders) earning 6.25% if they decide to unwind their positions, thanks to the combination of USDC/DAI 1:1 conversion possibility and the LitePSM contract (sUSDS → USDS → DAI → USDC).
Market Parameters
sUSDS/USDC on Mainnet
Loan token: USDC - 0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48
Collateral token: sUSDS - 0xa3931d71877C0E7a3148CB7Eb4463524FEc27fbD
Oracle: sUSDS/USDS exchange rate & DAI/USDC as 1:1 - 0x6f2B373A397464090645c726eE6685123afEE36f
IRM: Adaptive Curve IRM - 0x870aC11D48B15DB9a138Cf899d20F13F79Ba00BC
LLTV: 94.5%
Supply cap: 100m USDC
sUSDS/USDT on Mainnet
Loan token: USDT - 0xdAC17F958D2ee523a2206206994597C13D831ec7
Collateral token: sUSDS - 0xa3931d71877C0E7a3148CB7Eb4463524FEc27fbD
Oracle: sUSDS/USDS exchange rate, Chainlink DAI/USD, & USDT/USD - 0x9F48b0791C701be7a51B66A4e550A5f0B52A8f5e
IRM: Adaptive Curve IRM - 0x870aC11D48B15DB9a138Cf899d20F13F79Ba00BC
LLTV: 94.5%
Supply cap: 100m USDT
sUSDS/ETH on Mainnet
Loan token: WETH - 0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2
Collateral token: sUSDS - 0xa3931d71877C0E7a3148CB7Eb4463524FEc27fbD
Oracle: sUSDS/USDS exchange rate, & Chainlink ETH/DAI - 0x0C426d174FC88B7A25d59945Ab2F7274Bf7B4C79
IRM: Adaptive Curve IRM - 0x870aC11D48B15DB9a138Cf899d20F13F79Ba00BC
LLTV: 86%
Supply cap: 16k ETH
Next steps
Please feel free to comment or ask any question in this thread or via DMs, we’d be happy to hear and address any questions and concerns you may have and potentially adjust the mentioned listings and parameters.
Summary of changes that are soon to be executed, and that will be subject of veto with 4 days notice:
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Adding sUSDS/USDT market to Flagship USDT vault, and setting the supply cap to 100m USDT (Mainnet).
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Adding sUSDS/USDC market to Flagship USDC vault, and setting the supply cap to 100m USDC (Mainnet).
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Adding sUSDS/ETH market to Flagship ETH vault, and setting the supply cap to 16k ETH (Mainnet).
As a reminder any LP that opposes a new supply cap being submitted can set a vote to veto the new cap following this tutorial and using the corresponding Snapshot space for all of the mentioned vaults on Mainnet.
For live accurate data on Morpho Blue and MetaMorpho refer to our dashboard.
For any questions or feedback feel free to get in touch with us here or on our social platforms.