PIP-55 l Adjust USDp Fee Distribution

Summary: The proposal aims to adjust USDp generated fee distribution.

Context: As voted in PIP-51 l Launch USDp, the new Parallel USD Stablecoin, 70% of USDp generated fees are currently distributed to sUSDp. In order to increase our competitiveness on the market we propose to increase fee distribution share to sUSDp.

Rationale: In line with the current growth strategy, which is to maximize the use of sUSDp as collateral for looping, we propose to drastically increase the allocation of fees generated by the protocol to sUSDp.

Below is the current USDp generated fees distribution:

• sUSDp: 70.00%
• sPRL Holders: 15.00%
• DAO Treasury: 10.00%
• Insurance Fund: 9.00%
• Angle Labs: 1.00%

We propose to adjust fees distribution in this way:

• sUSDp: 90.00%
• DAO Treasury: 9.00%
• Angle Labs: 1.00%

sPRL holders have received $80k in fee sharing over the last 6 months, entirely from Parallel V2 generated fees. As Parallel V2 continues to generate fees, and in order to support the growth of Parallel V3, we believe it is appropriate to reallocate the budget to sUSDp.

The insurance fund currently consists of approximately $800k and is still being fed by fees generated by Parallel V2. We believe it is appropriate to reallocate these fees to sUSDp.

Means:

• Human Resources: Multisig signers will need to sign transactions to execute the proposal
• Treasury Resources: No treasury resources needed.

Technical implementation: On each chain where the protocol is deployed, keepers will adjust USDp fee distribution in accordance with the proposal.

Voting options:

• For USDp Fee Distribution Adjustment
• Against / Rework the Proposal
• Abstain

Author(s): Cooper Labs