DIP068 - Proposed Parameter Update for sUSX and USX Vaults

Summary

This proposal seeks to:

1. Adjust the savings interest rate for sUSX to 8% APY.
2. Adjust the minting cap for sUSX.
3. adjust the borrowing cost for all USX vaults to (x + 1)% (where x is the sUSX saving interest rate). i.e if sUSX savings interest rate is 8%, once approved by dForce DAO, the borrowing cost will be adjusted to 9% and all future adjustment will be automatically adjusted once sUSX rate adjustment is set.

Background

sUSX offers omni savings interest to holders across all supported networks, allowing USX holders to share in protocol revenues with the dForce DAO in proportion to the amount of USX deposited into the sUSX vault. This encourages long-term liquidity contributions to both USX and dForce.

The supply rate for sUSX was initially set at 15% APY through DIP066.

Motivation

Through monitoring the price of USX in the markets, as well as market sentiments and participation, the Risk Team proposed to adjust the parameters for sUSX and all USX vaults in order to further stabilize USX’s target price and improve mass adoption.

Specification

This proposal, if approved by governance, will take effect from September 16, 2024 8:00:00 PM

1. Proposed parameter updates for sUSX:

	Mint Cap	Savings Rate
Ethereum	3,000,000	8%
Arbitrum	6,000,000	8%
Optimism	3,000,000	8%
Base	3,000,000	8%
BSC	1,000,000	8%

2. Proposed borrowing interest for all USX vaults: sUSX savings rate + 1%