Gearbox DAO

Author:

@apeir99n

Summary

This proposal aims to increase sUSDE limits for stable pools.

Motivation

Currently, the Quota usage for sUSDe has reached ~100% for all stablepools (you can check historical usage here). Taking into account 30%+ organic yield on sUSDe seems it’s a good option to increase utilization and organic supply rate for Gearbox pools.

It is important to note that Gearbox now has a ~52M position in USDe and ~15M position in sUSDe, while on-chain liquidity allows to sell ~95M USDe with 1% slippage: see order routing image below. Though not all these liquidity sources are available on gearbox, the available pools have sufficiently deep liquidity and, if something happens, arbitrage will be carried out with all the available on-chain liquidity. In this regard, it seems that increasing the limits is safe. It should be noted also that gearbox uses market price oracles for USDe, therefore, in the case of USDe depeg, liquidation of Credit Accounts may create negative selling pressure. However, the current ratio of proposed quota limits and amount of on-chain liquidity (approx. 1:1) should be sufficient to avoid negative scenarios.

Specification

We propose the following changes:

1. Increase sUSDe quota limit in USDC pool to 15M USDC
2. Increase sUSDe quota limit in USDT pool to 5M USDC
3. Increase sUSDe quota limit in DAI pool to 5M USDC
4. Increase sUSDe quota limit in GHO pool to 5M USDC

Transaction log

Transaction log can be found here, md5 checksum is 912bff199431d79139da6ac07dfcf7a3.

Voting

Simple Approve/Reject