Architectural Debt Cleanup: Migrating Remaining Collaterals to Liquidations 2.0

Architectural Debt Cleanup: Migrating Remaining Collaterals to Liquidations 2.0

Summary:

  • Migrate stablecoins to the clipper contract to remove architectural debt.
  • Disable the clipper so stablecoins cannot be liquidated (as is the case today).

Detail:
The introduction of Liquidations 2.0 has seen a gradual migration of collateral types from an English style auction to a Dutch style auction mechanism. This has been done incrementally over time to test and prove out the new system functionality.

The final collateral type that needs to be migrated is stablecoins, including the following:

USDC-A
USDC-B
TUSD-A
USDT-A
PAXUSD-A
GUSD-A
PSM-USDC-A
UNIV2DAIUSDC-A

This migration requires moving these collateral types from the flipper contract to the clipper contract. Protocol Engineering proposes this with the following values:

hole: 0,
chop: 113 * WAD / 100,
buf: 105 * RAY / 100,
tail: 220 minutes,
cusp: 90 * RAY / 100,
chip: 1 * WAD / 1000,
tip: 300 * RAD,
cut: 999 * RAY / 1000,
step: 120 seconds,
tolerance: 95 * RAY / 100,

This migration is a simple change that is important because it reduces the architectural debt of having to maintain and manage the older flipper contracts now that all collateral will be managed through Liquidations 2.0.

Important note: Liquidations for these collaterals will remain OFF by disabling the clipper contract. Similarly, the clipper-mom will be denied access, so only Governance can enable these clippers by voting via the usual delay.

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