RFP-23: Delisting BUSD as a Supported Asset

Abstract

RFP-23 seeks to obtain approval from Radiant DAO stakeholders for the planned removal of BUSD (Binance USD) as a supported asset in Radiant's money market on the BNB Chain. This proposal comes in response to the forthcoming wind-down of BUSD as announced by Binance and Paxos.

Motivation

As Paxos has halted the creation of new BUSD tokens, the circulating supply of BUSD will progressively decline to zero. This will be further influenced by an expected wind-down state by February 2024, during which Paxos has confirmed that BUSD redemptions will be honored.

Recognizing this trajectory, Binance has advised lending protocols, including Radiant, to begin the gradual delisting of BUSD. This includes stopping borrowing, freezing the market, and ceasing liquidity mining on the market. RFP-23 is designed to proactively prepare the Radiant DAO for the impending wind-down of BUSD, aligning our strategy with the broader industry response.

Key Terms

• Allocation points: Parameters that determine asset distribution and rewards within the Radiant protocol.
• BUSD: Binance USD, a stablecoin issued and managed by Paxos.

Specifications

Short-Term Actions for BUSD Market

• Tuning Allocation Points: Reduce allocation points to zero.
• Withdrawal Only: Set the BUSD market to a "withdraw only" state on the user interface, effective thirty (30) days after ratification.
• Cease Borrowing: Ensure that no further borrowing of BUSD is permitted.
• Freezing the Market: Implement necessary contract changes to prevent additional collateralization using BUSD.

Transition to Wind-Down Phase

• Communication and Notifications: Develop and disseminate clear communication to users about the status of BUSD, including the timeline and instructions for withdrawal.
• Emissions: Terminate RDNT emissions for all BUSD positions.

Final Removal

• Removal from Supported Assets: Complete the removal of BUSD from the list of supported assets within Radiant's front end.
• UI Adjustment for BUSD Withdrawal: After removal from the main markets page, modify the user interface to add a distinct section where users can withdraw their remaining BUSD funds. This area will facilitate continued access to withdrawal, separate from the main markets interface.

These specifications lay the groundwork for an orderly transition, ensuring that Radiant's response is aligned with industry standards and protects user interests.

Steps to Implement

1. Short-term action: Upon ratification, tune allocation points down to 0 for BUSD, following a seven (7) day grace period.
2. Thirty (30) days after ratification: Set BUSD to "withdraw only" status on the Radiant UI.
3. Final removal: Coordinate the removal of BUSD from supported assets with compliance to Binance's broader wind-down plan.

Overall Cost/Impact

• User Impact: Guidance required for users with BUSD positions.
• System Impact: Modifications to Radiant's protocols and interfaces.
• Legal & Compliance Considerations: Alignment with Binance's recommendations and legal requirements.
• Costs: Minimal, primarily internal resource allocation for technical implementation and communication.

Timeline

Implementation of allocation points adjustment no sooner than seven (7) days after ratification, followed by a withdrawal-only phase to be implemented no sooner than thirty (30) days after ratification, leading to final removal.

Voting

In Favor: Supportive of RFP-23, agreeing to sunset BUSD as a supported asset on BNB Chain.

Against: Against the implementation of RFP-23, opposing the removal of BUSD.

Abstain: Undecided, but contributing to quorum.