PIP-51 l Launch USDp, the new Parallel USD Stablecoin

Improvement Protocol (PIP)
1

Summary:

The proposal aims to launch USDp, the new Parallel USD stablecoin leveraging the Parallel V3 infrastructure; as well as sUSDp, the staked version of USDp.

Introducing USDp
Introducing USDp1920×1080 171 KB

Context:

In 2023, paUSD, the Parallel V2 USD stablecoin was introduced and launched on Ethereum & Polygon PoS. While this may have been a good opportunity to diversify and grow the protocol, the technical architecture resulted in the absence of efficient scaling and the difficulty of maintaining a stable peg, leading to stagnation of the paUSD supply. As mentioned in the proposal introducing Parallel V3, the decision was made to start afresh with Parallel V3. We therefore propose to launch a new stablecoin USD and progressively phase out paUSD.

Note: The plan to progressively phase out paUSD will be detailed in another proposal.

Rationale:

We propose to deploy a new USD stablecoin using the Parallel V3 infrastructure, called USDp. We propose to deploy initially on several chains, including:

  • Ethereum
  • Base
  • Sonic
  • HyperEVM
  • Avalanche
  • Binance Smart Chain
  • Optimism
  • Arbitrum
  • Polygon PoS
  • Sei
  • Berachain
  • Scroll
  • Gnosis
  • Unichain
  • Ink
  • Tac

Deploying the core protocol on a large number of chains from the beginning will give us greater flexibility in terms of business development and growth in the short and medium term. Thanks to the modular architecture of Parallel V3 and its Parallel Modules can be deployed on additional chains in the future, depending on demand.

Note: In order to deploy a Parallel module, the core protocol must also be deployed.

I. Parallel Modules Initial Deployment Chains:

A. Parallelizer Module:

We propose to deploy the Parallelizer Module, which is going to serve as the main minting module on what we believe to be the main drivers for growth for the protocol in the coming months. Initial tokens allowed in the backing of USDp have been carefully reviewed for their stability, robustness, sustainable yield generation and business development potential. Allowed assets and their parameters can be updated at any time by the DAO. The Parallelizer Module will be deployed on several initial chains with these parameters including:

  • Ethereum:
    • frxUSD:
      • Price Feed: Chainlink frxUSD/USD
      • Minimum Exposure: 0.00%
      • Maximum Exposure: 100.00%
      • Whitelisted: No
      • Stale Period: 86,400 seconds
      • Mint Fee: 0.00%
      • Burn Fee: 0.00%
    • sfrxUSD:
      • Price Feed: sfrxUSD/frxUSD Exchange Rate + Chainlink frxUSD/USD
      • Minimum Exposure: 20.00%
      • Maximum Exposure: 95.00%
      • Whitelisted: No
      • Stale Period: 86,400 seconds
      • Mint Fee: 0.00%
      • Burn Fee: 0.05%
    • USDe:
      • Price Feed: Chainlink USDe/USD
      • Minimum Exposure: 0.00%
      • Maximum Exposure: 100.00%
      • Whitelisted: No
      • Stale Period: 86,400 seconds
      • Mint Fee: 0.00%
      • Burn Fee: 0.00%
    • sUSDe:
      • Price Feed: Chainlink sUSDe/USD
      • Minimum Exposure: 20.00%
      • Maximum Exposure: 95.00%
      • Whitelisted: No
      • Stale Period: 86,400 seconds
      • Mint Fee: 0.00%
      • Burn Fee: 0.05%
  • Base:
    • USDS:
      • Price Feed: Chainlink USDS/USD
      • Minimum Exposure: 0.00%
      • Maximum Exposure: 100.00%
      • Whitelisted: No
      • Stale Period: 86,400 seconds
      • Mint Fee: 0.00%
      • Burn Fee: 0.00%
    • sUSDS:
      • Price Feed: sUSDS/USDS Exchange Rate + Chainlink USDS/USD
      • Minimum Exposure: 20.00%
      • Maximum Exposure: 95.00%
      • Whitelisted: No
      • Stale Period: 86,400 seconds
      • Mint Fee: 0.00%
      • Burn Fee: 0.05%
  • Sonic:
    • scUSD:
      • Price Feed: Chainlink scUSD/USD
      • Minimum Exposure: 0.00%
      • Maximum Exposure: 100.00%
      • Whitelisted: No
      • Stale Period: 86,400 seconds
      • Mint Fee: 0.00%
      • Burn Fee: 0.00%
    • gami_scUSD Silo Vault:
      • Price Feed: Vault Share Exchange Rate + Chainlink scUSD/USD
      • Minimum Exposure: 20.00%
      • Maximum Exposure: 95.00%
      • Whitelisted: No
      • Stale Period: 8,6400 seconds
      • Mint Fee: 0.00%
      • Burn Fee: 0.05%
    • frxUSD:
      • Price Feed: Redstone frxUSD/USD
      • Minimum Exposure: 0.00%
      • Maximum Exposure: 100.00%
      • Whitelisted: No
      • Stale Period: 86,400 seconds
      • Mint Fee: 0.00%
      • Burn Fee: 0.00%
    • sfrxUSD:
      • Price Feed: Chainlink sfrxUSD/USD
      • Minimum Exposure: 20.00%
      • Maximum Exposure: 95.00%
      • Whitelisted: No
      • Stale Period: 86,400 seconds
      • Mint Fee: 0.00%
      • Burn Fee: 0.05%
  • HyperEVM:
    • USDe:
      • Price Feed: Redstone USDe/USD
      • Minimum Exposure: 0.00%
      • Maximum Exposure: 100.00%
      • Whitelisted: No
      • Stale Period: 86,400 seconds
      • Mint Fee: 0.00%
      • Burn Fee: 0.00%
    • sUSDe:
      • Price Feed: Redstone sUSDe/USD
      • Minimum Exposure: 20.00%
      • Maximum Exposure: 95.00%
      • Whitelisted: No
      • Stale Period: 86,400 seconds
      • Mint Fee: 0.00%
      • Burn Fee: 0.05%

B. Savings Module:

We propose to deploy the Savings USDp, which will be called sUSDp. The Savings USDp will act as a low risk yield bearing with real yield coming from assets generating yield in the backing of USDp. Main use cases include, but are not limited to wallet integration for one click USD saving account & collateral asset in lending protocols.

As mentioned in the Parallel V3 Introduction proposal, savings rates aren’t automatically updated and need to be updated by a keeper. We propose to set Cooper Labs and Mimo Labs as keepers.

The Savings Module will be deployed on several initial chains with these parameters including:

  • Ethereum
  • Base
  • Sonic
  • HyperEVM

C. Bridging Module:

Deploying the Bridging Module on all the chains where the core protocol is deployed will allow USDp to freely move across any chain, including those where the Parallelizer Module is not deployed. This will also enable us to move forward extremely quickly in terms of integration and business development, requiring no additional development work to deploy the token on a lending protocol or DEX. The Bridging Module will be deployed on several initial chains with these parameters including:

  • Ethereum:
    • DVNs: (2 of 1 of 2)
      • Required: 2
        • LayerZero Labs
        • Nethermind
      • Optionals: 1 of 2
        • Horizen
        • P2P
    • Mint Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Burn Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Fees:
      • Rate: 0.00%
    • Isolate Mode:
      • No
  • Base:
    • DVNs: (2 of 1 of 2)
      • Required: 2
        • LayerZero Labs
        • Nethermind
      • Optionals: 1 of 2
        • Horizen
        • P2P
    • Mint Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Burn Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Fees:
      • Rate: 0.00%
    • Isolate Mode:
      • No
  • Sonic:
    • DVNs: (2 of 1 of 2)
      • Required: 2
        • LayerZero Labs
        • Nethermind
      • Optionals: 1 of 2
        • Horizen
        • P2P
    • Mint Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Burn Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Fees:
      • Rate: 0.00%
    • Isolate Mode:
      • No
  • HyperEVM:
    • DVNs: (2 of 1 of 2)
      • Required: 2
        • LayerZero Labs
        • Nethermind
      • Optionals: 1 of 2
        • Horizen
        • P2P
    • Mint Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Burn Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Fees:
      • Rate: 0.00%
    • Isolate Mode:
      • No
  • Avalanche:
    • DVNs: (2 of 1 of 2)
      • Required: 2
        • LayerZero Labs
        • Nethermind
      • Optionals: 1 of 2
        • Horizen
        • P2P
    • Mint Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Burn Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Fees:
      • Rate: 0.00%
    • Isolate Mode:
      • No
  • Binance Smart Chain:
    • DVNs: (2 of 1 of 2)
      • Required: 2
        • LayerZero Labs
        • Nethermind
      • Optionals: 1 of 2
        • Horizen
        • P2P
    • Mint Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Burn Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Fees:
      • Rate: 0.00%
    • Isolate Mode:
      • No
  • Optimism:
    • DVNs: (2 of 1 of 2)
      • Required: 2
        • LayerZero Labs
        • Nethermind
      • Optionals: 1 of 2
        • Horizen
        • P2P
    • Mint Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Burn Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Fees:
      • Rate: 0.00%
    • Isolate Mode:
      • No
  • Arbitrum:
    • DVNs: (2 of 1 of 2)
      • Required: 2
        • LayerZero Labs
        • Nethermind
      • Optionals: 1 of 2
        • Horizen
        • P2P
    • Mint Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Burn Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Fees:
      • Rate: 0.00%
    • Isolate Mode:
      • No
  • Polygon PoS:
    • DVNs: (2 of 1 of 2)
      • Required: 2
        • LayerZero Labs
        • Nethermind
      • Optionals: 1 of 2
        • Horizen
        • P2P
    • Mint Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Burn Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Fees:
      • Rate: 0.00%
    • Isolate Mode:
      • No
  • Sei:
    • DVNs: (2 of 1 of 2)
      • Required: 2
        • LayerZero Labs
        • Nethermind
      • Optionals: 1 of 2
        • Horizen
        • P2P
    • Mint Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Burn Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Fees:
      • Rate: 0.00%
    • Isolate Mode:
      • No
  • Berachain:
    • DVNs: (2 of 1 of 2)
      • Required: 2
        • LayerZero Labs
        • Nethermind
      • Optionals: 1 of 2
        • Horizen
        • P2P
    • Mint Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Burn Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Fees:
      • Rate: 0.00%
    • Isolate Mode:
      • No
  • Scroll:
    • DVNs: (2 of 1 of 2)
      • Required: 2
        • LayerZero Labs
        • Nethermind
      • Optionals: 1 of 2
        • Horizen
        • P2P
    • Mint Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Burn Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Fees:
      • Rate: 0.00%
    • Isolate Mode:
      • No
  • Gnosis:
    • DVNs: (2 of 1 of 2)
      • Required: 2
        • LayerZero Labs
        • Nethermind
      • Optionals: 1 of 2
        • Horizen
        • P2P
    • Mint Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Burn Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Fees:
      • Rate: 0.00%
    • Isolate Mode:
      • No
  • Unichain:
    • DVNs: (2 of 1 of 2)
      • Required: 2
        • LayerZero Labs
        • Nethermind
      • Optionals: 1 of 2
        • Horizen
        • P2P
    • Mint Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Burn Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Fees:
      • Rate: 0.00%
    • Isolate Mode:
      • No
  • Ink:
    • DVNs: (2 of 1 of 2)
      • Required: 2
        • LayerZero Labs
        • Nethermind
      • Optionals: 1 of 2
        • Horizen
        • P2P
    • Mint Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Burn Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Fees:
      • Rate: 0.00%
    • Isolate Mode:
      • No
  • Tac:
    • DVNs: (2 of 1 of 2)
      • Required: 2
        • LayerZero Labs
        • Nethermind
      • Optionals: 1 of 2
        • Horizen
        • P2P
    • Mint Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Burn Limits:
      • Daily: 2,500,000.00
      • Global: 10,000,000.00
    • Fees:
      • Rate: 0.00%
    • Isolate Mode:
      • No

D. Flashloan Module:

Flashloans play an important role in Parallel V3, enabling USDp assets in backing to be rebalanced in the Parallelizer Module, and allowing future USDp liquidity pools to be arbitraged in order to maintain the best price between all pools. To facilitate these operations, we propose to deploy the flashloan module on all chains where the core protocol is also deployed. Fees will be sent to the FeeCollector contract in order to be redistributed. We propose to initially deploy on these chains with these parameters:

  • Ethereum:
    • Fee: 0.00%
  • Base:
    • Fee: 0.00%
  • Sonic:
    • Fee: 0.00%
  • HyperEVM:
    • Fee: 0.00%
  • Avalanche:
    • Fee: 0.00%
  • Binance Smart Chain:
    • Fee: 0.00%
  • Optimism:
    • Fee: 0.00%
  • Arbitrum:
    • Fee: 0.00%
  • Polygon PoS:
    • Fee: 0.00%
  • Sei:
    • Fee: 0.00%
  • Berachain:
    • Fee: 0.00%
  • Scroll:
    • Fee: 0.00%
  • Gnosis:
    • Fee: 0.00%
  • Unichain:
    • Fee: 0.00%
  • Ink:
    • Fee: 0.00%
  • Tac:
    • Fee: 0.00%

II. Fee Distribution:

We propose to distribute Parallel V3 generated fees by the USDp codebase as follow:

  • sUSDp: 70%
  • sPRL Holders: 15%
  • DAO Treasury: 10%
  • Insurance Fund: 4%
  • Angle Labs: 1%

III. Deployment Costs:

In order to support the cost of deployment of the protocol we require a funding of $500 in PAR, paUSD, USDC to be sent to Cooper Labs.

Note: The approval of this proposal is conditioned to the approval of the Parallel V3 Introduction proposal (which is not the case right now).

Means:

  • Human Resources: Multisig signers will need to sign transactions to execute the proposal.
  • Treasury Resources: $500 in paUSD/PAR/USDC on Ethereum to cover the deployment costs of USDp & sUSDp.

Technical implementation:

On each chain where USDp will be deployed:

  1. Core Protocol:
  • Deploy the AccessManager contract
  • Deploy USDp contract
  • Set targetSelector of USDp contract to USDp_MINTER_ROLE by calling the accessManager
  1. Parallelizer Module: (only on Ethereum, Base, Sonic & HyperEVM)
  • Deploy All facets
  • Deploy DiamondInitializer if not deployed (used to initialize the Parallelizer)
  • Deploy Paralleliser with the following collaterals config:
    • Collateral1:
      • Oracle:
        • oracleType
        • targetType
        • quoteType
        • stalePeriods
        • chainlinkDecimals
      • Hyperparameters:
        • xMintFee
        • yMintFee
        • xBurnFee
        • yBurnFee
      • RedemptionSetup:
        • xRedeemFee
        • yRedeemFee
  • Set targetSelector of Parallelizer contract to GUARDIAN_ROLE and GOVERNOR_ROLE
  • Grant USDp_MINTER_ROLE to the Paralleliser by calling the accessManager
  1. Savings Module: (only on Ethereum, Base, Sonic & HyperEVM)
  • Deploy sUSDp
  • Set targetSelector of sUSDp to GUARDIAN_ROLE and GOVERNOR_ROLE
  • Grant USDp_MINTER_ROLE to the sUSDp by calling the accessManager
  1. Bridging Module:
  • Deploy BridgeableUSDp contract
  • Setup Peer and DVNs to link BridgeableUSDp with others chains
  • Set targetSelector of BridgeableUSDp contract to GUARDIAN_ROLE and GOVERNOR_ROLE
  • Grant USDp_MINTER_ROLE to the BridgeableUSDp by calling the accessManager
  1. Flashloan Module:
  • Deploy FlashParallelToken contract
  • Set targetSelector of FlashParallelToken contract to GOVERNOR_ROLE
  • Grant USDp_MINTER_ROLE to the FlashParallelToken by calling the accessManager

Voting options:

  • For the Launch of USDp
  • Against / Rework the Proposal
  • Abstain

Sentiment poll:

  • For the Launch of USDp
  • Against/Rework the proposal
  • Abstain
0 voters

Author(s): Cooper Labs

4 Likes
2

QUESTION 5:

When breaking down the USDp proposal, it is clear the scale of ambition of the team as the initial intention seems to be to deploy USDp on 16 chains right from the start. This is a fantastic ambition and I am encouraged to see that. That said, I am concerned that with such a small team and essentially no capital resources, how do we realistically expect for USDp to gain adoption? If I analyse further, I would assume ETH / BASE / SONIC / HYPER to take priority since the plan is for the savings module to be first deployed there with sUSDp. Do we have a plan to bootstrap adoption and liquidity for USDp starting with these 4 chains or is the plan merely to deploy and wait and see. Learning our lessons from PAR and paUSD, I would believe it would be much more strategic if we focused our efforts and liquidity on perhaps 2 key chains at most? If there is a plan that I am not seeing, please enlighten me. And please objectively break down in as much detail how we plan to push adoption for USDp and sUSDp. The proposal eluded to wallet integration for one click USD savings: In this specific case, are we looking as AYA integration and if so when? Crucially, we were not the first movers on this and I hope the team has a unique and bold plan to differentiate our yield bearing stable from the rest of the pack. Right now, unfortunately, I am unable to see the potential and would like to hear from the team both on Defi but also Business Development, Partnerships and Marketing on the concrete plans we have to make sure USDp doesn’t end in a failure. Once again, we are short on time, and I am sincerely pushing for us to move into intense , intellectual discussions over our plans and move forward with v3 + USDp deployment as quickly and as successfully as possible.

1 Like
3

This will mainly come from business development and deals. From discussions we’ve had with Mimo Labs, they’ve allocated more internal resources to the Parallel Protocol in terms of growth and communication in the past few weeks in order to speed up current deals being discussed.

Yes that’s it.

We plan to bootstrap adoption and liquidity on Base, Sonic & HyperEVM to start, we also received demand on some other chains that we currently consider as ‘peripherical chains’, such as TAC & Sei. A proposal will be published by Mimo Labs in the coming to inititate Marketing & Liquidity Growth.

1 Like
4

Proposal Edit:

  • Removed Mantle from Chains Deployment, including Core Protocol, Bridging Module and Flashloan Module
  • Added Tac, the TON sidechain, to Chains Deployment, including Core Protocol, Bridging Module and Flashloan Module
5

The proposal is now live on Snapshot from June 16th at 2pm CET until June 25th at 2pm CET: https://snapshot.box/#/s:mimo.eth/proposal/0x5945ef7e4c0672208bd18e5eaa29421ac83107f255989c533b32e178a59aaaa0