QIP248: Onboard Morpho Gauntlet Compound USDC to QiDao Polygon PoS PSM

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network: Polygon PoS author: 0xNacho implementor: DAO created: 2025-09-20

Summary

Approve Morpho Gauntlet Compound USDC vault on Polygon PoS as collateral for QiDao's peg stability module (PSM).

Abstract

This proposal adds the following USDC vault as an approved strategy to mint MAI on Polygon PoS

• Morpho Gauntlet Compound USDC Vault

The mechanics remain identical to existing PSM strategies. The QiDao Guardians will retain the ability to rebalance stablecoin reserves for PSM collaterals to maintain diversification and manage exposure to third parties.

Motivation

Following QIP239 passing, the protocol successfully integrated cUSDC as an approved strategy on Polygon PoS. Since then, Compound<>Morpho<>Polygon collaboration changed the way rewards are distributed on this chain, requiring a new integration.

QiDao's current PSM on Polygon is fully backed by Compound's USDC deposits. This new strategy would utilize Morpho markets with Compound Blue USDC curated by Gauntlet. This requires for the protocol to swap USDC.e (bridged) for native USDC deployed by Circle.

Gauntlet is one of crypto's most known risk management companies, with several years of experience and unmatched distribution channel within DeFi users. Partnering with them on a new PSM collateral will increase QiDao's footprint on Polygon and the greater DeFi ecosystem.

Specification

Given that the contract is immutable, a new PSM contract will be deployed with the Morpho Gauntlet Compound USDC vault as an approved strategy. This requires for the protocol to swap USDC.e for native USDC deployed by Circle.

Future-proofing: If required, the strategy may be migrated again in the future without requiring a new vote, provided the new destination offers more optimal yield, does not introduce additional third-party risks, and remains limited to blue-chip stable collaterals and already approved partner platforms and curators.

Rationale

• Maintains rewards flow to the protocol to support the chain sustainability while keeping a diversified basket of collaterals.
• Expands QiDao’s integrations with recognized DeFi players like Circle, Compound, Morpho, Gauntlet or Beefy.
• Improves long-term sustainability of Polygon’s liquidity mining programs.

Technical Specification

If this proposal is approved, a new PSM contract will be deployed, with Morpho Gauntlet Compound USDC as an approved strategy. Specific withdrawal and deposit amounts attached to the Proposal Payload (PP) will depend on the final reserve balances at the time of implementation, minting demand and other risk management factors.

Configurable Values

• Deposit fee: $0
• Withdraw fee: Greater of $1 or 0.3%
• Withdraw period: 3 days

Transactions

[
  {
    "multisig": "0xf0F5F7c21d181B7a1F9Aa36Ed46DB3E620EDa385",
    "transactions": [
      {
        "chainId": "Polygon PoS",
        "to": "0xdEffF862C76C6f9c7164B44f860fAe64C2A92aF5",
        "function": "claimFees",
        "args": [],
        "value": "0"
      },
      {
        "chainId": "Polygon PoS",
        "to": "0xdEffF862C76C6f9c7164B44f860fAe64C2A92aF5",
        "function": "setUpgrade",
        "args": [],
        "value": "0",
        "annotation": "Allows for migration from deprecated collateral "
      },
      {
        "chainId": "Polygon PoS",
        "to": "0xdEffF862C76C6f9c7164B44f860fAe64C2A92aF5",
        "function": "setPaused",
        "args": [
          "0xcce9d801",
          true
        ],
        "value": "0",
        "annotation": "Pauses exchanges of MAI to USDC.e"
      },
      {
        "chainId": "Polygon PoS",
        "to": "0xdEffF862C76C6f9c7164B44f860fAe64C2A92aF5",
        "function": "setPaused",
        "args": [
          "0xb6b55f25",
          true
        ],
        "value": "0",
        "annotation": "Pauses deposits of USDC.e for MAI"
      },
      {
        "chainId": "Polygon PoS",
        "to": "0xdEffF862C76C6f9c7164B44f860fAe64C2A92aF5",
        "function": "withdrawMAI",
        "args": [],
        "value": "0",
        "annotation": "Removes all MAI debt ceiling from PSM, this will be executed after all scheduled withdraws are completed"
      },
      {
        "chainId": "Polygon PoS",
        "to": "0x3c499c542cEF5E3811e1192ce70d8cC03d5c3359",
        "function": "transfer",
        "args": [
          "0x9FF9CF431E56468f09Cb49Cad2611a4a9b7070f9",
          "0"
        ],
        "value": "0",
        "annotation": "Transfers USDC to the new PSM"
      }
    ]
  }
]