Summary:
As Maker continues to reduce the DSR in favor of USDS, there is a tactical need to migrate a majority of Treasury Reserves from sDAI to sUSDS. Doing so will immediately create an additional 1% APY (sUSDS is currently 6.5% to sDAI’s 5.5%) and failing to do so creates substantial missed opportunity cost.
Proposal:
While the community continues to flesh out a more involved restructuring of the Reserve Framework (Will be proposed in a discrete OIP), there are several tactical changes that need to be implemented in the near term. These changes are fairly involved and span many contracts since today, the entire system is configured to be mono-asset (DAI). As such, this proposal seeks to change that asset and therefore, changing all the dependencies to it. Here is a high level breakdown of what is involved:
- Adjust Contracts (Many of these are already written as part of other systems)
- Deploy Contracts on Chain
- Test Contracts with MS (Safety and Security Checks. Verify Dependencies on Third Party Contracts)
- Use OCG to Role Contracts (This uses OCG to give the contracts elevated roles and remove roles from their old counterparts)
- Verify (Verify business continuity and service behavior)
- Document (Update our documents and records)
There are also some dependencies that should be well understood as a part of this change:
- Clearinghouse v2 will be shutdown to prevent new loan originations in DAI and Clearinghouse v3 will be deployed in its place that will be USDS based. The terms offered by this factory will be identical to v2 and these changes will happen sequentially so that there isn’t a break in Cooler as an offering.
- YRF (Yield Repurchase Facility) will be redeployed to be USDS based.
- Components of RBS will be redeployed such that the lower cushion is USDS funded and the Upper Cushion Bond Market auctions are executed in USDS
There are also a handful of utility contracts including, but not limited to:
- A policy to sweep TRSRY v1 of DAI that it collects from Cooler Interest or repaid debt over to USDS since we will have outstanding debt issued for a very long time.
- Making OlympusHeart upgradeable
Given the time constraint on this effort, the development team has already started to organize an in-depth MOP (Method of Procedure) to execute, contingent on support from the community on this OIP. Furthermore, the OIP will be ratified and executed using OCG.
