# PIP-43 l Offboard USDC.e as paUSD Collateral on Polygon PoS **URL:** \ **Category:** Approved PIPs\ **Created:** [January 30, 2025, 11:32am UTC](https://gov.parallel.best/t/pip-43-l-offboard-usdc-e-as-pausd-collateral-on-polygon-pos/439 "2025-01-30T11:32:01Z")\ **Posts on this page:** 3\ **Page:** 1
**Author:** ![JeanBrasse](https://dub1.discourse-cdn.com/flex005/user_avatar/gov.parallel.best/jeanbrasse/32/28_2.png) [@JeanBrasse](https://gov.parallel.best/u/JeanBrasse)\ **Post date:** [January 30, 2025, 11:32am UTC](https://gov.parallel.best/t/pip-43-l-offboard-usdc-e-as-pausd-collateral-on-polygon-pos/439/1 "2025-01-30T11:32:01Z")
**Summary:** This proposal aims to remove the USDC.e (Bridged USDC) token as paUSD collateral on Polygon PoS. **Context:** Circle, the issuer of USDC, has officially discontinued support for bridged USDC (USDC.e), urging users to transition to native USDC for enhanced reliability and security. Native USDC is directly issued by Circle and is redeemable 1:1 for US dollars, providing a more trustworthy asset compared to USDC.e. As of November 10th 2024, Circle ceased support for deposits and withdrawals of USDC.e, emphasizing the adoption of native USDC on Polygon PoS for improved stability and liquidity. By integrating native USDC as the primary stablecoin collateral for paUSD, we ensure a safer and more reliable asset for users on the Polygon PoS network. Therefore, we propose to offboard USDC.e and seamlessly integrate native USDC, in order to increase the safety of the protocol, as well as aligning with Circle’s vision for a stable and secure digital dollar ecosystem. **Rationale:** Previously, the Parallel DAO has approved to onboard native USDC as collateral for paUSD on Polygon PoS ([MIR-44](https://gov.parallel.best/t/mir-44-add-native-usdc-as-pausd-collateral-on-polygon-pos/365) & [MIR-44.1](https://gov.parallel.best/t/mir-44-1-choose-native-usdc-collateral-parameters-for-pausd-on-polygon-pos/368)). Following this, the plan to offboard USDC.e would take place in 3 steps: 1. Reduction of Debt Ceiling to 0: We propose to reduce the debt ceiling of USDC.e for paUSD to 0, effectively halting any further borrowing against these assets. 2. Incremental Increase in Borrowing Rates: To expedite the repayment of existing debt, we propose to increase borrowing rates by 10 percentage points per week until the outstanding debt is cleared. Note: This adjustment will be made independently of any partial automatic borrow rate adjustments ([MIP-23](https://gov.parallel.best/t/mip-23-l-partial-automated-borrow-rates-adjustments/344) & [MIP-25](https://gov.parallel.best/t/mip-25-l-update-partial-automated-borrow-rates-adjustments/355/3)). 1. Removal of Collateral: The USDC.e will be removed from allowed collaterals for paUSD. Note: Any individuals still holding USDC.e as collateral on Parallel should consider transitioning to native USDC any time soon if the proposal is approved. **Means:** - Human Resources: Multisig signers will need to sign transactions to execute the proposal - Treasury Resources: There will be no treasury resources needed to execute the proposal. **Technical implementation:** - On Polygon PoS, Parallel DAO [multisig](https://app.safe.global/balances?safe=matic:0x2046c0416A558C40cb112E5ebB0Ca764c3C5c32a) will call following smart contracts: - paUSD ConfigProvider: [0x44adedae87cda45f9e9b6d49e49db5d583646163](https://polygonscan.com/address/0x44adedae87cda45f9e9b6d49e49db5d583646163#code) - Modify the Debt Limit by calling by calling the [SetCollateralDebtLimit](https://polygonscan.com/address/0x44adedae87cda45f9e9b6d49e49db5d583646163#writeContract#F4) function and set it to 0 - Change the borrow Rate by calling the [SetCollateralBorrowRate](https://polygonscan.com/address/0x44adedae87cda45f9e9b6d49e49db5d583646163#writeContract#F2) function at +10.00% every week. - Remove USDC.e collateral by calling the [RemoveCollateral](https://polygonscan.com/address/0x44adedae87cda45f9e9b6d49e49db5d583646163#writeContract#F1) function with the USDC.e contract: [0x2791bca1f2de4661ed88a30c99a7a9449aa84174](https://polygonscan.com/address/0x2791bca1f2de4661ed88a30c99a7a9449aa84174) **Voting Options:** - Accept the Offboarding - Against/Rework the proposal - Abstain Authors: [@JeanBrasse](https://gov.parallel.best/u/jeanbrasse) from Mimo Labs **Sentiment poll:** _Poll ([view on site](https://gov.parallel.best/t/pip-43-l-offboard-usdc-e-as-pausd-collateral-on-polygon-pos/439/1))_ ---
**Author:** ![JeanBrasse](https://dub1.discourse-cdn.com/flex005/user_avatar/gov.parallel.best/jeanbrasse/32/28_2.png) [@JeanBrasse](https://gov.parallel.best/u/JeanBrasse)\ **Post date:** [February 4, 2025, 3:12pm UTC](https://gov.parallel.best/t/pip-43-l-offboard-usdc-e-as-pausd-collateral-on-polygon-pos/439/2 "2025-02-04T15:12:03Z")
The proposal is now live on Snapshot from February 5th at 4pm CET until February 14th at 4pm CET: [Snapshot](https://v1.snapshot.box/#/mimo.eth/proposal/0x17976756087ba90243785a2e0f026506194628ed50f7ba7d3ad782846d3070ab) ---
**Author:** ![JeanBrasse](https://dub1.discourse-cdn.com/flex005/user_avatar/gov.parallel.best/jeanbrasse/32/28_2.png) [@JeanBrasse](https://gov.parallel.best/u/JeanBrasse)\ **Post date:** [February 14, 2025, 4:24pm UTC](https://gov.parallel.best/t/pip-43-l-offboard-usdc-e-as-pausd-collateral-on-polygon-pos/439/3 "2025-02-14T16:24:19Z")
The proposal has been approved by the DAO, results: [https://snapshot.box/#/s:mimo.eth/proposal/0x17976756087ba90243785a2e0f026506194628ed50f7ba7d3ad782846d3070ab](https://snapshot.box/#/s:mimo.eth/proposal/0x17976756087ba90243785a2e0f026506194628ed50f7ba7d3ad782846d3070ab)