Summary
This proposal announces the submission of csUSDL as collateral on csUSDC for Ethereum.
Rationale
csUSDL is a Morpho vault v1.1 curated by Steakhouse for Coinshift. Its underlying is wUSDL which is a supervised stablecoin issued by Paxos. Both USDL and USDC are hardcoded as they are supervised stablecoins (partially for USDC).
Market details
The market id 0x83b7ad16905809ea36482f4fbf6cfee9c9f316d128de9a5da1952607d5e4df5e and is using 96.5% LLTV. You can find all the information on the market here.
We are using 96.5% LLTV which is consistent with the strong correlation of assets and on-chain liquidity and the fast liquidity that is available from Paxos at the Dashboard for KYCed users. Markets on csUSDL are more shallow and rates at utilization target are lower due to the yield bearing nature of wUSDL. Measures are taken to optimize for liquidity on csUSDL and minimum borrow rate on csUSDL/USDC will be higher to incentivize other vaults to take the exposure in case of temporary illiquidity.
Supply Cap: 10M USDC
Next steps
Please feel free to comment or ask any question in this thread or via DMs.
As always, Steakhouse vault holders can easily veto any change using the Aragon guardian over the next 7 days, which follows the best-in-class risk standard for lenders.
For reference, here is the Aragon DAO links where users can wrap their vault token and create a vote: