TUSD offboarding plan
01Summary
Proposal to offboard TUSD from Aave V2 Ethereum by adjusting risk parameters: setting LTV to 0%, disabling borrowing, increasing liquidation bonus to 10%, raising reserve factor to 95%, and significantly adjusting interest rate curves to discourage usage and incentivize migration to other stablecoins.
- Type
- parameter change
Key changes
- LTV reduced from 75% to 0%, preventing TUSD from being used as collateral(high)
- Borrowing and stable borrowing disabled, preventing new TUSD borrows(high)
- Liquidation threshold lowered from 77.5% to 75% while liquidation bonus increased from 5% to 10%(high)
- Reserve factor increased from 25% to 95%, directing most interest to protocol(medium)
- Base rate increased to 3%, Slope1 to 7%, and Slope2 to 200%, with UOptimal reduced to 20% to create unfavorable borrowing conditions(high)
Notable concerns
- TUSD supply has already declined from 20M to 13.1M and borrows from 18M to 6.8M following previous freezing and LT reduction actions
- Offboarding follows the BUSD offboarding precedent but TUSD remains a historic Aave asset
Generated by Kvorum
02Description
Simple Summary
This proposal aims to initiate the offboarding process for TUSD from the Aave V2 Ethereum pool. The process will follow a similar process as the BUSD offboarding plan part I.
Motivation
TUSD has been a historic asset of the Aave ecosystem, but due to recent events, the ACI suggests consideration of its offboarding. The offboarding plan leverages the previous success of the BUSD offboarding plan and will incentive current users to slowly migrate their positions to other stablecoins on Aave.
Previous proposals have frozen TUSD and lowered TUSD LT to 77.5%. These proposals have reduced TUSD borrow and supply over the past 30 days, from 20M supplied and 18M borrowed, to 13.1M supplied and 6.8M borrowed today.
Specification
The following table outlines the proposed changes to the TUSD risk parameters:
| Parameter | Current Value | Proposed Value |
|---|---|---|
| LTV | 75% | 0% |
| Liquidation Threshold | 77.5% | 75% |
| Liquidation Bonus | 5% | 10% |
| Reserve Factor | 25% | 95% |
| Borrowing Enabled | Yes | No |
| Stable Borrowing Enabled | Yes | No |
| Base Rate | 0% | 3% |
| Slope1 | 4% | 7% |
| Slope2 | 100% | 200% |
| UOptimal | 80% | 20% |
References
- Implementation: Ethereum
- Tests: Ethereum
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The decoded calldata contains only a single generic execute() call to a proposal payload contract, which is the standard Aave governance pattern: the actual risk-parameter changes (LTV, LT, liquidation bonus, reserve factor, interest rate curve, borrowing flags) are implemented inside the payload contract's bytecode rather than passed as visible calldata arguments. Because the decoded action does not expose the individual parameter values, it is not possible to directly verify each numeric claim in the description (LTV 75%->0%, LT 77.5%->75%, liquidation bonus 5%->10%, reserve factor 25%->95%, borrowing disabled, rate curve changes) against on-chain data. The description links to the corresponding implementation and test source files, which is consistent with this architecture and gives reasonable assurance the payload matches the stated intent, but this cannot be confirmed from the decoded action alone. No contradiction is evident, and the single execute() call is fully consistent with what the description implies (a payload executing the offboarding plan), so there is no basis to flag a discrepancy. Confidence is set to low because the calldata's opacity prevents a rigorous line-by-line verification of the specific parameter values claimed in the prose.
Generated by Kvorum
04Actions
- Target
- 0x40c3…7e3c
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
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