This is a proposal to deploy the USDA Transmuter (Angle stablecoin primary market) on Arbitrum and Base.

Context

For more context check out the Angle governance forum (https://gov.angle.money/t/aip-97-crosschain-transmuter-deployment/858)

Proposal

• Deploy a modified version of the Transmuter and grant it the minter role on Arbitrum and Base. The modified version will have a debt ceiling accepting only USDC as a collateral. Debt ceiling can be updated by the guardian address of the protocol and should be set in order to ensure that no more USDC are minted on these other chains than what has been minted on Ethereum. Set Debt ceiling to 2 millions USDA on both Arbitrum and Base.
• Fund the rebalancing investment with 100k pre-minted USDA and transfer them to the rebalancing bot address

Implementation

A specific Transmuter implementation was developed for the crosschain support (https://github.com/AngleProtocol/angle-transmuter/pull/113). It implies very few changes by adding a check on the amount of stablecoins minted.

Value to the protocol

A primary market on multiple chains will make stUSD easily accessible to anyone on any chain. It will also help maintain a tight peg on these chains by not relying on any crosschain arbitrage.