PIP-64 l Sunset USDp Parallelizer & Savings Module on Sonic

Summary:

The proposal aims to sunset the USDp Parallelizer & Savings Modules on Sonic.

Context:

On February 27th, RedStone, the price feed provider for whitelisted assets in backing of USDp on Sonic (frxUSD/USD & sfrxUSD/frxUSD) informed us that they were preparing to discontinue their services on Sonic within the next 48 hours following Sonic Labs' refusal to renew their contract with them. Following negotiations with RedStone, we have 15 days to change oracles. Given Sonic's current situation and the fact that we have already had to change the price feed urgently in the past, we propose to sunset the Parallelizer & Savings Module on Sonic.

Rationale:

Back in May 2025, before Parallel V3 launched, we traveled to Vienna for the Sonic Summit to meet with Sonic Labs and the ecosystem to prepare for the launch of Parallel V3. An agreement to earn points during the launch and marketing support was reached, as well as numerous partnerships with the ecosystem, including Shadow, Beets, SwapX, Fly, Frax, Trevee, OpenOcean, KyberSwap & Silo.

When Parallel V3 launched, Sonic Labs did not support us in any way, ghosted us for months, and refused to award us points. Of the partnerships established with the ecosystem, only those with Beets, OpenOcean, KyberSwap and Frax were successful, as well as Trevee (only partially).

Since November, the Sonic ecosystem has been brain dead. Shadow is dead, Fly launched its token with great fanfare and then disappeared, Trevee was the victim of fraud, and Silo ghosted us for months. And that's not even counting Sonic Labs, which has also completely disappeared, announcing the departure of key members of their team and a new CEO who came out of nowhere (and left in less than three months, whose company's business was literally to hire CEOs for offshore companies).

Then in December, shortly before Christmas, Chainlink informed us that they were ending the price feed for scUSD, frxUSD & sfrxUSD on Sonic. This led us to urgently change the collateral price feeds.

Now RedStone has informed us that they are sunsetting their price feed on RedStone for two reasons:

• Extremely low liquidity on Sonic -> Sonic Labs' job is to maintain a minimum acceptable level of liquidity on the chain
• Sonic Labs' refusal to renew their contract with RedStone

In May 2025, Sonic's TVL was $1.14B. Today, it is $33M, a drop of more than 97% in less than a year.

We (the DAO) have spent tens of thousands of dollars since the launch of Parallel V3. This includes:

• Deployment & maintenance of USDp
• Deployment & maintenance of the Parallelizer Module
• Deployment & maintenance of the Savings Module
• Off-chain infrastructure
• Incentives for USDp liquidity (frxUSD/USDp & scUSD/USDp pools)
• BD Resources
• USDp/USD & sUSDp/USD DIA Price Feeds
• USDp/USD & sUSDp/USD RedStone Price Feeds
• Hypernative Real-Time Monitoring

Yesterday, when we sent Sonic Labs our tweet about the return of incentives on the Curve frxUSD/USDp pool, asking them for a simple Quote & Retweet, they asked us to perform KYC for two members of the team. For what reason?

It is therefore time to cut our losses.

We propose to immediately discontinue the Parallelizer & Savings Module instances on Sonic, stop all on-chain incentives, and sunset the DIA and RedStone price feeds for sUSDp/USD & USDp/USD.

Practically speaking, this means:

• The DAO will pause the ability to mint USDp on Sonic; it will only be possible to burn it to recover collateral, and then, when all collateral has been withdrawn, it will pause the ability to burn USDp.
• Cooper Labs keepers will move the assets currently in the Parallelizer Module to other chains before RedStone sunsets the price feeds.
• The sUSDp rate on Sonic will be set to 0 indefinitely by keepers, Cooper Labs will block the ability to mint sUSDp on the app, only burning will be possible.
• The DAO will then remove the ability to mint USDp on Sonic from the Parallelizer & Savings Module.
• The DAO Treasury and Insurance Fund will withdraw all remaining liquidity from Sonic and rebalance it to other chains (managed by DAO multisigs signers & Cooper Labs, no DAO approval required)

Note: RedStone has already informed us that they will sunset the USDp/USD & sUSDp/USD price feeds on Sonic, our quarterly bill will be reduced from $24k to $18k. We are also in negotiations with DIA to achieve the same.

USDp itself, as well as the bridging and flashloan modules, will remain active, requiring only minimal maintenance.

Technical Implementation:

On Sonic, the DAO Multisig will:

• In the ParallelizerUSDp contract, call the ‘togglePause’ function with these parameters:
  • address: 0x80eede496655fb9047dd39d9f418d5483ed600df (frxUSD)
  • pausedType: 0 (mint)
• In the ParallelizerUSDp contract, call the ‘togglePause’ function with these parameters:
  • address: 0x5bff88ca1442c2496f7e475e9e7786383bc070c0 (sfrxUSD)
  • pausedType: 0 (mint)
• In the sUSDp contract, call the ‘setMaxRate’ function with these parameters:
  • newMaxRate: 0 (0.00% APR)
• In the ParallelizerUSDp contract, call the ‘togglePause’ function with these parameters (once all collateral removed):
  • address: 0x80eede496655fb9047dd39d9f418d5483ed600df (frxUSD)
  • pausedType: 1 (burn)
• In the ParallelizerUSDp contract, call the ‘togglePause’ function with these parameters (once all collateral removed):
  • address: 0x5bff88ca1442c2496f7e475e9e7786383bc070c0 (sfrxUSD)
  • pausedType: 1 (burn)
• In the ParallelAccessManager contract, call the ‘revokeRole’ function with these parameters (once all collateral removed):
  • roleId: 110 (USDp_MINTER_ROLE)
  • account: 0xBEFBAe2330186F031b469e26283aCc66bb5F8826 (ParallelizerUSDp)
• In the ParallelAccessManager contract, call the ‘revokeRole’ function with these parameters (once all collateral removed):
  • roleId: 110 (USDp_MINTER_ROLE)
  • account: 0xe8a3DA6f5ed1cf04c58ac7f6A7383641e877517b (sUSDp)

Voting options:

• For the Launch of USDp Parallelizer & Savings Module on Plume
• Against / Rework the Proposal
• Abstain

Sentiment poll: [poll type=regular results=always chartType=bar]

• For the Sunset of USDp Parallelizer & Savings Module on Sonic
• Against/Rework the proposal
• Abstain [/poll]

Author(s): Cooper Labs