Summary
This proposal recommends sunsetting USX and sUSX on Unitus Finance. This targeted action reduces depeg-related exposure within Unitus Finance, protects users, and strengthens overall risk management across dForce network.
Background
USX is a decentralized stablecoin within the dForce ecosystem designed to maintain a soft USD peg through over-collateralization and market incentives. While USX has played an important role in dForce’s early growth and experimentation with native stablecoin design, the stablecoin landscape has matured, with users increasingly favoring deeper-liquidity and more resilient fiat-backed and hybrid alternatives.
Recent market cycles have shown that decentralized stablecoins remain structurally exposed to depeg risk during periods of volatility and liquidity stress. Reducing USX exposure in lending markets such as Unitus Finance is a prudent step to limit downside risk and improve protocol resilience.
Motivation
Reduce Risk Within Unitus Finance
USX-related depeg and liquidation risk can negatively impact lending markets. Sunsetting USX and sUSX on Unitus Finance limits risk propagation while allowing existing users to exit positions in an orderly manner.
Improve Capital Efficiency
Discouraging further USX usage enables liquidity and user activity to migrate toward deeper and more stable assets that are better suited for lending markets.
Implementation
The change will be simple, transparent, and non-disruptive, implemented as follows:
Sunset USX and sUSX on Unitus Finance
- Disable further depositing for USX and sUSX on Unitus Finance
- Disable further borrowing for USX on Unitus Finance
- Existing positions remain unaffected and can be withdrawn or repaid normally
Proposal
It is proposed that the dForce community approve:
- Setting USX and sUSX deposit caps to zero on Unitus Finance
- Setting USX borrow caps to zero on Unitus Finance
- Maintaining full support for withdrawals and repayments
This targeted adjustment reduces localized risk within Unitus Finance while strengthening protocol safety and user protection without disrupting the broader dForce ecosystem.