Summary

This proposal seeks to include sUSDX as a new collateral asset within Lista DAO’s Innovation Zone. The initial borrow limit for sUSDX will be set at 50,000 lisUSD.

Additionally, this proposal introduces a framework where adjustments to collateral borrow limits for all collaterals will no longer require separate governance proposals, enabling the DAO to rapidly respond to market demands.

References

1. What is USDX and sUSDX? USDX is a synthetic USD stablecoin that employs a multicoin arbitrage strategy launched by usdx.money. sUSDX is the token representing staked USDX. Users are able to receive a portion of the protocol's generated yield by staking their USDX and receiving sUSDX automatically in return.

USDX Token Contract: 0xf3527ef8dE265eAa3716FB312c12847bFBA66Cef

sUSDX Token & Stake USDX Contract: 0x7788A3538C5fc7F9c7C8A74EAC4c898fC8d87d92

2. About usdx.money usdx.money is a decentralized bankless synthetic stablecoin issuer, building the next gen stablecoin infra connecting DeFi, CeFi, and TradFi.

Website: https://usdx.money Twitter: https://twitter.com/usdx_money Docs: https://docs.usdx.money

Abstract

The addition of sUSDX as a collateral asset will expand user options and support greater flexibility within Lista DAO’s Innovation Zone. The initial borrow limit will be capped at 50,000 lisUSD to assess market demand and monitor the collateral’s performance.

Furthermore, this proposal advocates for removing the separate proposal-based approval for each collateral’s borrow limit adjustment. This change aims to improve agility in adapting to market dynamics, while the team aims to make reliable decisions during the transition to a fully decentralised DAO.

Motivation

The introduction of sUSDX as collateral reflects Lista DAO’s commitment to innovation and diversification. By enabling sUSDX borrowing, the DAO can attract new users and increase protocol activity. The Innovation Zone provides an experimental framework, making it an ideal environment to test sUSDX as a collateral option.

The existing requirement for governance proposals to adjust borrow limits is often time-consuming and reactive, limiting the protocol’s ability to adapt to changing market conditions. Removing proposals for borrow limit adjustment allows the team to make rapid responses to the changing market conditions.

Specification

Minimum Collateralization Ratio (MCR): 120% Borrow Limit: 50,000 lisUSD lisUSD Mint Fee: 0 Borrowing Rate: Dynamic rate Withdrawal Options: sUSDX Withdrawal Fee: 0% Minimum Borrow: 15 lisUSD Minimum Collateral Deposit: 100 sUSDX

Adjustable Borrow Limits

1. Future adjustments to the borrow limit for sUSDX and all other collaterals will no longer require a separate proposal.
2. The adjustments will be available publicly, ensuring transparency and accountability.
3. This approach ensures smooth operations during the transition to a fully decentralized DAO, building on successful practices implemented by other DAOs.

Benefits (Pros)

1. Expands collateral options, attracting new users and enhancing protocol activity.
2. Increases flexibility and responsiveness to market conditions.
3. Promotes innovation by streamlining the process for adjusting borrow limits.

Downside (Cons)

Performance of sUSDX as collateral will need to be closely monitored to mitigate risks in its initial phase.

Voting

A “Yes” vote supports adding sUSDX as collateral in the Innovation Zone with an initial borrow limit of 50,000 lisUSD and removing proposal-based approval for future borrow limit adjustments.

“No” vote opposes the inclusion of sUSDX as collateral and retains the current process for borrowing limit adjustments via governance proposals.

This proposal aims to enhance Lista DAO’s adaptability while fostering innovation and maintaining community trust.