PIP-69 | USDp Parallelizer & Bridging Modules Parameters Updates

Improvement Protocol (PIP) Approved PIPs
1

Summary:

This proposal updates the USDp Parallelizer backing asset parameters across the four Parallelizer chains and tightens the USDp bridge limits across all 24 chains.

Context:

In light of last week’s failed exploit attempt, and following internal discussions and consultations with auditors, the Multisig DAO has reduced the mint and burn limits for the Parallelizer and Bridging Modules. We propose formalizing these changes.

Rationale:

This proposal addresses the two items in a single coordinated parameter update across the Parallelizer and Bridging modules.

I. Phasing out USDe and sUSDe on Ethereum

USDe and sUSDe will be retired from the Ethereum USDp backing in three sequenced steps, all authorized by this proposal:

  • Step 1: Block mint. Immediately upon proposal approval, USDp mints using USDe or sUSDe as input on Ethereum will be blocked. Existing USDe and sUSDe held in the Parallelizer continue to back outstanding USDp; only new mints from those assets are disabled.
  • Step 2: Block burn. Once outstanding USDe / sUSDe backing on Ethereum reaches zero, USDp burns into USDe / sUSDe will be blocked.
  • Step 3: Remove collateral. Once both mint and burn paths are disabled and the on-chain balance for USDe / sUSDe is zero, the assets will be removed from the authorized collateral list.

Steps 2 and 3 are state-dependent and will be executed by the DAO Multisig when the on-chain conditions are met. No additional vote is required between steps.

USDe and sUSDe remain part of the HyperEVM backing. The change in this proposal is Ethereum-specific.

II. Ethereum:

The retained Ethereum backing assets are updated to the following parameters:

III. Base:

USDC is added to the Base backing in preparation of Parallel v3.2, alongside the existing USDS / sUSDS slots which receive updated parameters:

  • USDC: (new)
    • 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%
    • Mint Cap: 1,500,000.00
  • 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%
    • Mint Cap: 1,500,000.00
  • sUSDS:

IV. 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%
    • Mint Cap: 1,500,000.00
  • ygamiUSDC

V. HyperEVM:

USDe and sUSDe remain authorized on HyperEVM, with tightened mint caps reflecting the smaller on-chain liquidity profile of the network:

  • 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%
    • Mint Cap: 500,000.00
  • sUSDe:
    • Price Feed: Redstone sUSDe/USD
    • Minimum Exposure: 40.00%
    • Maximum Exposure: 100.00%
    • Whitelisted: No
    • Stale Period: 86,400 seconds
    • Mint Fee: 0.00%
    • Burn Fee: 0.10%
    • Mint Cap: 1,000,000.00

VI. Bridge Parameter Tightening (24 chains)

The USDp bridge configuration is tightened uniformly across all 24 chains where USDp is bridgeable:

  • DVNs: (2 of 1 of 2)
    • Required: 2
      • LayerZero Labs
      • Nethermind
    • Optionals: 1 of 2
      • Horizen
      • Canary
  • Mint Limits:
    • Daily: 250,000.00
    • Global: 1,500,000.00
  • Burn Limits:
    • Daily: 250,000.00
    • Global: 1,500,000.00
  • Fees:
    • Rate: 0.00%
  • Isolate Mode:
    • No

The 24 chains affected: Ethereum, Base, Sonic, HyperEVM, Avalanche, Binance Smart Chain, Optimism, Arbitrum, Polygon PoS, Sei, Berachain, Scroll, Gnosis, Unichain, Ink, Tac, Linea, X Layer, Plume, Plasma, Katana, Fraxtal, World, Hemi.

Means:

  • Human Resources: The DAO Multisig signers will execute the parameter updates described in Technical Implementation.
  • Treasury Resources: None requested.

Technical Implementation:

The DAO Multisig will:

On Ethereum:

  • Block USDp mint using USDe as input on the Parallelizer.
  • Block USDp mint using sUSDe as input on the Parallelizer.
  • Set frxUSD parameters per Section II.
  • Set sfrxUSD parameters per Section II.
  • Once USDe backing reaches zero on the Parallelizer: block USDp burn into USDe and remove USDe from the authorized collateral list.
  • Once sUSDe backing reaches zero on the Parallelizer: block USDp burn into sUSDe and remove sUSDe from the authorized collateral list.

On Base:

  • Add USDC to the authorized collateral list with parameters per Section III.
  • Set USDS parameters per Section III.
  • Set sUSDS parameters per Section III.

On Avalanche:

  • Set USDC parameters per Section IV.
  • Set ygamiUSDC parameters per Section IV.

On HyperEVM:

  • Set USDe parameters per Section V.
  • Set sUSDe parameters per Section V.

On each of the 24 bridge chains listed in Section VI:

  • Set USDp daily mint limit to 1,000,000.
  • Set USDp global mint limit to 5,000,000.
  • Set USDp daily burn limit to 1,000,000.
  • Set USDp global burn limit to 5,000,000.

Voting Options:

  • For the USDp Backing & Bridge Parameter Updates
  • Against / Rework the Proposal
  • Abstain

Author(s): Cooper Labs

Community poll:

  • For the USDp Backing & Bridge Parameter Updates
  • Against / Rework the Proposal
  • Abstain
0 voters
1 Like
2026 Parallel Protocol Roadmap - Cooper Labs
2

This can be changed in the future via the gov forum and vote. So it’s semi temporary?

1 Like
3

Yes, this can be changed at any time with a vote.

1 Like
4

The proposal is now live on Snapshot from May 15 to May 24. To vote: Snapshot

5

The proposal has been approved by the DAO. Results: Snapshot