PIP-52 l Deploy USDp Parallelizer & Savings Modules on Avalanche

Improvement Protocol (PIP) Approved PIPs
1

Summary:

The proposal aims to deploy USDp Parallelizer & Savings Modules on Avalanche.

Context:

PIP-51 approved the deployment of USDp on 16 chains, including 4 ‘main’ chains where the Parallelizer Module (ie. main USDp minting module) & Savings Module (ie. sUSDp) are deployed. On remaining chains, including Avalanche, a ‘light version’ of the protocol is currently deployed, only including the bridging and flashloan module.

USDp is now deployed and expected to be publicly live in the coming days. As part of Business Development efforts from Mimo Labs & Cooper Labs we believe that a ‘full deployment’ of USDp, including the Parallelizer & Savings Modules on Avalanche would be beneficial for the Parallel Protocol. We’re thus proposing to deploy them on Avalanche.

Rationale:

  1. New Parallel Modules Deployments:

    A. Parallelizer Module:

We propose to deploy the Parallelizer Module, which is going to serve as the main minting module on Avalanche. Initial tokens allowed in the backing of USDp of Avalanche 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 Avalanche with these parameters:

  • Avalanche:

    • USDC:
      • Price Feed: Chainlink USDC/USD
      • Minimum Exposure: 0.00%
      • Maximum Exposure: 100.00%
      • Whitelisted: No
      • Stale Period: 86,400 seconds
      • Mint Fee: 0.00%
      • Burn Fee: 0.00%
    • mevUSDC Silo Vault:
      • Price Feed: mevUSDC/USDC Exchange Rate + Chainlink USDC/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 also propose to deploy the Savings USDp (ie. sUSDp). The Savings USDp will act as a low risk yield bearing asset with real yield coming from assets generating yield in the backing of USDp on Avalanche. Main Avalanche use cases will include, but are not limited to collateral asset in lending protocols (eg. Silo) and fixed yield opportunities in yield protocols (eg. Spectra)

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.

  1. Fee Distribution:

As for other chains we propose to distribute Parallel V3 generated fees from Avalanche USDp Parallelizer module in this way:

  • sUSDp: 70%
  • DAO Treasury: 19%
  • Insurance Fund: 10%
  • Angle Labs: 1%
  1. Deployment Ops & Costs:

In order to facilitate the deployment of modules on Avalanche and potentially on other chains we propose to add the Cooper Labs deployer address as a proposer on all deployed DAO Multisigs. Proposers are addresses that can prepare and suggest transactions for your Safe without having the ability to sign them.

In order to support the cost of deployment of the protocol we require a funding of $100 in USDC to be sent to Cooper Labs.

Means:

  • Human Resources: Multisig signers will need to sign transactions to execute the proposal.
  • Treasury Resources: $100 in USDC on Ethereum to cover the deployment costs.

Technical implementation:

On Avalanche:

  1. Parallelizer Module:

  • 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:
  • Deploy sUSDp
  • Set targetSelector of sUSDp to GUARDIAN_ROLE and GOVERNOR_ROLE
  • Grant USDp_MINTER_ROLE to the sUSDp by calling the accessManager
  1. Others Operations:
  • Send 100.00 USDC to 0x876C4D1Bd31af0d99191fC896F15a3A97D71aaB3 (Cooper Labs)
  • Add 0x66ccec236bbce5f1bbd1b2fc0a4014e57a55ad02 (Cooper Labs Deployer Address) as a proposer on all DAO Multisigs
  • Grant Keeper Role to 0xc351C917a7f7b267e86a5f5368Be40FD1788c32b (Cooper Labs Keeper Multisig) everywhere it is needed

Voting options:

  • For the Launch of USDp Parallelizer & Savings Module on Avalanche
  • Against / Rework the Proposal
  • Abstain

Sentiment poll:

  • For the Launch of USDp Parallelizer & Savings Module on Avalanche
  • Against/Rework the proposal
  • Abstain
0 voters

Author(s): Cooper Labs

1 Like
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Great to see PIP-52 combining Avalanche deployment with a clear fee structure.

How is continuity ensured if current keepers become unavailable? Any fallback?

2 Likes
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The DAO (via DAO Multisigs) can add/remove keepers at any time

1 Like
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The proposal is now live on Snapshot from September 1st at 7pm until September 10th at 7pm. To vote: https://vote.parallel.best/#/proposal/0xa83f61617006ec096088c61796bd6fc9364c8e0336328c82aec7121ee5d02de4

1 Like
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The proposal has been approved by the DAO. Results: https://vote.parallel.best/#/proposal/0xa83f61617006ec096088c61796bd6fc9364c8e0336328c82aec7121ee5d02de4

1 Like