Proposal ID: EXAIP-18 Proposer: Exactly Core Team Date: January 21, 2025.

Summary:

This proposal suggests freezing the bridged USDC.e market on the Exactly Protocol to focus exclusively on the native USDC market. The freeze will prevent new deposits and borrows in the USDC.e market while allowing users to withdraw, repay, or liquidate their positions.

Motivation:

The Exactly Protocol has successfully integrated the native USDC market in March 2024 (EXAIP-11), which offers improved efficiency, wider adoption, and better alignment with ecosystem standards. Maintaining two separate USDC markets (USDC.e and native USDC) creates redundancy and complicates liquidity management. By freezing the USDC.e market, the protocol can streamline operations, enhance user experience, and focus liquidity on the native USDC market.

Specification:

1. Market Restrictions:

• New Deposits: Disabled for the USDC.e market.
• New Borrows: Disabled for the USDC.e market.
• Withdrawals: Remain enabled to allow users to access their funds.
• Repayments: Remain enabled to ensure users can manage their existing debts.
• Liquidations: Remain enabled to maintain the integrity of the market.

2. Implementation Timeline:

• The freeze will take effect immediately upon proposal execution.

3. Post-Freeze Monitoring:

• Continuously monitor the USDC.e market to ensure users can smoothly withdraw, repay, and liquidate their positions.

Benefits:

• Simplified Operations: Consolidating to the native USDC market reduces complexity and overhead.
• Liquidity Focus: Focusing on the native USDC market ensures deeper liquidity and better rates for users.
• User Experience: Eliminating redundancy provides a cleaner, more intuitive experience.

Conclusion:

Freezing the USDC.e market is a necessary step toward optimizing the Exactly Protocol by focusing exclusively on the native USDC market. This move aligns with the protocol’s long-term goals of improving efficiency, liquidity, and user experience.