AIP - 106: Balance sheet simplification

This is a proposal to simplify the balance sheet of the protocol and remove some elements which have so far not brought a lot of value to the protocol.

Context

The protocol had many deployments across different chains and holds some positions on chains which are not yielding a lot or are not getting a ton of usage. For the sake of simplifying the balance sheet, reducing risks and making it easier for everyone to comprehend the exposures they're facing when they're in the protocol, we propose to get rid of some positions.

Proposal

The proposal is to:

• kill the liquidity AMO positions of the protocol on Arbitrum, Optimism and BNB Chain where the protocol had seeded liquidity pool for EURA with USDC or USDT. In practice, this means that the protocol will pull its liquidity from these positions, burn the minted EURA (if these have been minted on the chain) or simply bridge them back to the mainnet treasury address if these had initially been minted on mainnet and then bridged. For the corresponding USDC and USDT, proposal is to bridge them back to mainnet and use it to mint USDA to be held on the protocol treasury multisig for USDA.
• kill the lending AMO position for the protocol on Aave V3 on Polygon by withdrawing the 100k EURA that had been minted there. It's possible that liquidity is not immediately available to withdraw, and so we suggest to withdraw by batches everything that's withdrawable
• within the borrow module, set to 0 the debt ceiling of the collateral assets which have less than 120k EURA or USDA borrowed. In current conditions, this means that the only collateral assets that will remain within the borrow module are: wstETH, wBTC and wETH on Ethereum, and wBTC and wETH on Arbitrum. Note that people who have borrow positions on other collateral assets will still be able to repay their position or hold them if they want at no extra cost. They just won't be able to borrow more.
• consolidate the treasury holdings of the protocols on other chains back into EURA and USDA on mainnet. Apart from the ETH which are held by the protocol on Polygon and Ethereum for the Arrakis ANGLE-wETH position of the protocol, we suggest to consolidate all the protocol holdings on other chains than Ethereum back into EURA and USDA held on Ethereum. This typically means swapping some tokens into EURA or USDA, and bridging EURA/USDA held on other chains back into mainnet. For all these operations, we suggest to use the associated guardian addresses of the protocol

For the exact details and size of the positions mentioned here, you can check the analytics of the protocol here

Value to the protocol

This is a way for the protocol to consolidate its holdings and focus on the assets that are bringing the most value to the system while reducing risk exposure.