RFP-40: Onboard USDe on Ethereum & Arbitrum

Abstract

RFP-40 proposes integrating USDe (Ethena’s synthetic dollar) as a full collateral and borrow market within Radiant Capital's Ethereum and Arbitrum deployments.

Motivation

Radiant Capital aims to provide a decentralized platform for lending and borrowing cryptocurrencies, offering users an efficient and secure means to access financing and generate yields. As the DeFi market evolves, expanding the platform's offerings by incorporating new, high-quality assets as collateral and borrowing options is essential.

Ethena’s synthetic dollar, USDe, provides a stable crypto-native solution for a cash-and-carry structured product. USDe’s market cap, liquidity, and volatility metrics are trending positively, suggesting their readiness for inclusion on Radiant. USDe is a Layer Zero omnifungible token (OFT) and fits well within Radiant’s omnichain mission.

This governance proposal seeks approval to integrate USDe as an accepted form of collateral and as a borrowing market within Radiant Capital's Ethereum and Arbitrum deployment. This expansion aligns with Radiant Capital's vision of offering its users a comprehensive and diverse set of assets.

The Risk Committee has evaluated USDe and recommended the parameters for its integration into the platform, which will be outlined below.

Key Terms

• USDe - Ethena’s synthetic dollar token

• Max LTV - The Maximum LTV ratio represents the maximum borrowing power of a specific collateral. For example, if a collateral has an LTV of 75%, the user can borrow up to 0.75 worth of ETH in the principal currency for every 1 ETH worth of collateral.

• Liquidation Threshold - This represents the threshold at which a borrow position will be considered undercollateralized and subject to liquidation for each collateral. For example, if a collateral has a liquidation threshold of 80%, it means that the position will be liquidated when the debt value is worth 80% of the collateral value.

Specifications

• Add USDe as a full collateral and borrow market on Ethereum

| Parameter | Value | |----------------------|--------------| | Enable Borrowing | Yes | | LTV | 72.00% | | LT | 75.00% | | Liquidation Bonus | 8.50% | | Supply Cap (USDe) | 65,000,000 | | Borrow Cap (USDe) | 52,000,000 | | U-Optimal | 80% | | Slope1 | 9.00% | | Slope2 | 75.00% |

• Add USDe as a full collateral and borrow market on Arbitrum

| Parameter | Value | |----------------------|--------------| | Enable Borrowing | Yes | | LTV | 69.00% | | LT | 72.00% | | Liquidation Bonus | 8.50% | | Supply Cap (USDe) | 5,700,000 | | Borrow Cap (USDe) | 4,900,000 | | U-Optimal | 80% | | Slope1 | 9.00% | | Slope2 | 75.00% |

Steps to Implement

• Chainlink Integration: To list USDe, a Chainlink feed for the USDe must be integrated. This feed will provide accurate, real-time data for the USDe token.

• Arbitrum USDe chainlink feed: 0x88AC7Bca36567525A866138F03a6F6844868E0Bc

• Ethereum USDe chainlink feed: 0xa569d910839Ae8865Da8F8e70FfFb0cBA869F961

• Smart Contract Implementation: Based on the defined parameters, the Radiant team will implement the necessary updates to enable the integration of USDe as a collateral and borrow market with the parameters as laid out above. This implementation will involve coding and testing the smart contracts to ensure their functionality and security.

• User Interface Update: The Radiant Capital user interface will be updated to reflect the addition of USDe as a collateral and borrow market. This includes providing users with the option to select USDe as collateral and borrow assets and displaying relevant information such as USDe exchange rates, available loan options, and associated risks.

Overall Cost/Impact

Minimal.

Timeline

Integration is expected to occur swiftly, subject to the following stages:

• Local Testing: The Radiant team will conduct thorough testing of the implementation in a local environment to ensure its functionality, security, and compatibility within the Ethereum and Arbitrum ecosystems.

• Staging: Following Chainlink Feed integration, the implementation will proceed to a staging phase, where further testing will verify the integrity and functionality of the USDe collateral and borrow market.

Voting

• In Favor: Supportive of RFP-40, adding USDe to the Ethereum and Arbitrum deployments of Radiant

• Against: Against implementation of the RFP-40 proposal

• Abstain: Undecided, but contributing to quorum