Simple Summary

This SCCP proposes to decrease the maxTokenAmount on the DAI wrapper to zero from 20 million sUSD.

Abstract

The maxTokenAmount is the maximum amount of synth that could be minted against a deposited a designated underlying.

Motivation

DAI was initially introduced in SCCP-264 to cater to traders' synth liquidity needs and meet the increasing demand for sUSD, which was released with perps v2. However, as we near the launch of perps v3 and the v3 staking system, it's beneficial to gradually phase out DAI wrappers, making the transition to v3 smoother. Moreover, with sUSD liquidity readily available in curve pools, now is an ideal time to move away from DAI.

Upon the release of v3, acquiring sUSD would become much more convenient, thanks to multiple paths built into V3 that allows traders to acquire sUSD, as well-thought-out risk controls that focus on skewness.

It's worth mentioning that in case there's a sudden surge in sUSD demand before the v3 implementation matures, there are alternatives like LUSD, GHO, and CRVUSD. These tokens have ample on-chain liquidity and can be integrated with wrappers to help meet the sUSD demand while also diversifying the debt pool's exposure to counterparty risk.

Copyright

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