PIP-51 l Launch USDp, the new Parallel USD Stablecoin

Summary:

The proposal aims to launch USDp, the new Parallel USD stablecoin leveraging the Parallel V3 infrastructure; as well as sUSDp, the staked version of USDp.

Context:

In 2023, paUSD, the Parallel V2 USD stablecoin was introduced and launched on Ethereum & Polygon PoS. While this may have been a good opportunity to diversify and grow the protocol, the technical architecture resulted in the absence of efficient scaling and the difficulty of maintaining a stable peg, leading to stagnation of the paUSD supply. As mentioned in the proposal introducing Parallel V3, the decision was made to start afresh with Parallel V3. We therefore propose to launch a new stablecoin USD and progressively phase out paUSD.

Note: The plan to progressively phase out paUSD will be detailed in another proposal.

Rationale:

We propose to deploy a new USD stablecoin using the Parallel V3 infrastructure, called USDp. We propose to deploy initially on several chains, including:

• Ethereum
• Base
• Sonic
• HyperEVM
• Avalanche
• Binance Smart Chain
• Optimism
• Arbitrum
• Polygon PoS
• Sei
• Berachain
• Scroll
• Gnosis
• Unichain
• Ink
• Tac

Deploying the core protocol on a large number of chains from the beginning will give us greater flexibility in terms of business development and growth in the short and medium term. Thanks to the modular architecture of Parallel V3 and its Parallel Modules can be deployed on additional chains in the future, depending on demand.

Note: In order to deploy a Parallel module, the core protocol must also be deployed.

[FULL PROPOSAL ON THE GOVERNANCE FORUM, DUE TO SNAPSHOT LIMITATIONS]

Fee Distribution:

We propose to distribute Parallel V3 generated fees by the USDp codebase as follow:

• sUSDp: 70%
• DAO Treasury: 19%
• Insurance Fund: 10%
• Angle Labs: 1%

Deployment Costs:

In order to support the cost of deployment of the protocol we require a funding of $500 in PAR, paUSD, USDC to be sent to Cooper Labs.

Note: The approval of this proposal is conditioned to the approval of the Parallel V3 Introduction proposal (which is not the case right now).

Means:

• Human Resources: Multisig signers will need to sign transactions to execute the proposal.
• Treasury Resources: $500 in paUSD/PAR/USDC on Ethereum to cover the deployment costs of USDp & sUSDp.

Technical implementation: On each chain where USDp will be deployed: I. Core Protocol:

• Deploy the AccessManager contract
• Deploy USDp contract
• Set targetSelector of USDp contract to USDp_MINTER_ROLE by calling the accessManager

II. Parallelizer Module:

• Deploy All facets
• Deploy DiamondInitializer if not deployed (used to initialize the Parallelizer)
• Deploy Paralleliser with the following collaterals config:
  • Collateral1:
    • Oracle:
      • oracleType
      • targetType
      • quoteType
      • stalePeriods
      • chainlinkDecimals
    • Hyperparameters:
      • xMintFee
      • yMintFee
      • xBurnFee
      • yBurnFee
    • RedemptionSetup:
      • xRedeemFee
      • yRedeemFee
• Set targetSelector of Parallelizer contract to GUARDIAN_ROLE and GOVERNOR_ROLE
• Grant USDp_MINTER_ROLE to the Paralleliser by calling the accessManager

III. Savings Module:

• Deploy sUSDp
• Set targetSelector of sUSDp to GUARDIAN_ROLE and GOVERNOR_ROLE
• Grant USDp_MINTER_ROLE to the sUSDp by calling the accessManager

IV. Bridging Module:

• Deploy BridgeableUSDp contract
• Setup Peer and DVNs to link BridgeableUSDp with others chains
• Set targetSelector of BridgeableUSDp contract to GUARDIAN_ROLE and GOVERNOR_ROLE
• Grant USDp_MINTER_ROLE to the BridgeableUSDp by calling the accessManager

V. Flashloan Module:

• Deploy FlashParallelToken contract
• Set targetSelector of FlashParallelToken contract to GOVERNOR_ROLE
• Grant USDp_MINTER_ROLE to the FlashParallelToken by calling the accessManager

Voting options:

• For the Launch of USDp
• Against / Rework the Proposal
• Abstain

Author(s): Cooper Labs