TDP 42: Continue Loan to Market Maker Supporting Coinbase mUSD Listing

It is proposed to source 1,000,000 mUSD from the mStable Asset Management subDAO for maintaining the 1,000,000 mUSD interest-free loan to KBIT, a market maker supporting mUSD liquidity on Coinbase. The loan is currently provided on a short-term basis from pre-approved project funding from the mStable Funding subDAO, as well as a loan from an investor.

In order to achieve this, $1,000,000 of the saave position on Convex is to be converted into DAI, which would then be deposited into Alchemix allowing 500,000 alUSD to be borrowed and swapped to mUSD. Additionally, a further 500,000 mUSD would be sourced by liquidating the remaining saave position and by utilizing a small amount of DAI from the Treasury if required.

1,000,000 mUSD would then be transferred to the mStable Funding subDAO. 500,000 mUSD would be used to immediately repay the loan to the investor, and the remaining 500,000 mUSD would be used to replenish the pre-approved project funding.

As part of this proposal, it is also suggested that the TreasuryDAO be given discretionary power to recall the loan and delist mUSD if the benefits are no longer seen. This will avoid the need for another full governance proposal in the case that this is deemed appropriate, and therefore may reduce operational workload in the future.

Links

• RFC: Continuing to provide liquidity for Coinbase mUSD listing
• Proposal: TDP 42: Continue Loan to Market Maker Supporting Coinbase mUSD Listing
• Discussion: TDP 42: Continue Loan to Market Maker Supporting Coinbase mUSD Listing

Should the current market maker loan be switched over to the Asset Management subDAO to maintain an interest-free loan to KBIT to support liquidity of mUSD on Coinbase as proposed in TDP 42?