Summary
This proposal recommends several adjustments to the USX stablecoin to strengthen protocol risk management.
Proposed changes:
- Disable the USX Savings Rate (sUSX).
- Set LTV of USX and sUSX to 0 across all markets.
- Disable USX minting from Vaults on all supported chains.
Motivation
Following the approval of DIP076, which proposes to sunset USX and sUSX on Unitus Finance, this proposal takes the next step toward gradually winding down their roles within the dForce ecosystem.
Specifically, the proposed adjustments aim to:
- Reduce protocol liabilities associated with maintaining the USX savings rate.
- Strengthen risk management by preventing potential circular leverage involving USX and sUSX.
- Disable underutilized minting pathways, such as Vaults.
Together, these changes represent a prudent step toward de-risking the protocol and streamlining the product architecture as the ecosystem evolves.
Proposed Changes
1. Disable USX Savings Rate (sUSX)
- Stop accrual of the USX savings rate.
- No new yield will be generated for sUSX.
- Users will still be able to redeem sUSX for USX.
2. Set LTV of USX and sUSX to 0 on Unitus Finance
| Modules | Status | Actions |
|---|---|---|
| Gradually disable USX as collateral on Unitus Finance | 85% | 60%, 30%, 0% weekly |
| Gradually disable sUSX as collateral on Unitus Finance | 85% | 60%, 30%, 0% weekly |
Implications:
- USX and sUSX can no longer be used as collateral for borrowing.
- Existing users should adjust positions if necessary.
3. Disable USX Minting via all Vaults
- Pause USX minting from Vaults across all supported chains.
- Users can repay debt and withdraw collateral normally.
Implementation
Upon governance approval, the following changes will be executed:
- Disable sUSX savings rate module
- Set USX LTV → 0
- Set sUSX LTV → 0
- Disable USX minting via vaults