Phase out BUSD on Stargate

Background Feb 2023 / Paxos (BUSD minter) has been ordered by US regulators to stop issuing BUSD. https://www.theverge.com/2023/2/13/23597539/crypto-paxos-order-sec-binance-usd-stablecoin

Paxos has agreed to comply - and since Apr 2023, it has stopped minting BUSD. BUSD can only be redeemed by burning, meaning circulating supply of BUSD will trend towards zero over time. With no growth in sight and reducing utility over time, Stargate should reduce and ultimately close its BUSD pools, and reduce its exposure to zero. Binance has also confirmed to cease BUSD support by Feb 2024. Stargate should act on this sooner than later.

Proposal This proposal is to -Shut down BNB BUSD pool and associated pathways -Swap all BUSD multisig holdings into another highly liquid, USD-pegged stablecoin

Execution This proposal can be implemented immediately with minimal technical resources.

Upon proposal passing -Set BNB Chain BUSD pool into withdrawal only mode on Stargate UI -Notify community of intent to wind down pool and encourage LP withdrawal before Oct 30th -Stargate Protocol Funds (held in Multisig): Swap all BUSD on BNB Chain into another highly liquid USD-pegged stablecoin -PancakeSwap LP: Exit current position, swap all BUSD into another highly liquid USD-pegged stablecoin, and re-enter with STG-(USD-pegged stablecoin) pairing.

1 week after passing -Set BNB Chain BUSD pool emissions, and associated pathway weights, to 0. -Stargate should withdraw any BUSD POL, and swap for another USD-pegged stablecoin.

2 weeks after passing -Send notification to all BUSD pool farmers to unstake before/on Oct 30th

Summary This proposes to remove all BUSD from Stargate by Oct 30th 2023 (or 2 weeks after passing) in response to Binance’s plan to cease redemption support by Feb 2024. This includes both the BUSD pool on Stargate, as well as any holdings in the Stargate multisig (LP or wallet positions).