[Signal Request] Manage TUSD exposure due to ownership change

We had a long discussion those last 2 weeks regarding the change of ownership of TUSD (not to be confused with USDT). You can read all the arguments here.

The current DC is $135M. $53M DAI are borrowed. This is locking 20% of the total amount of TUSD in circulation. It doesn’t generate any revenue for us but helps a bit to keep the peg (but any stablecoin will do).

Now is the time for action.

How do you want to handle TUSD?

Please vote below.

If the set DC to 0 wins, no new DAI will be minted from TUSD-A starting from the end of January. No further actions will be taken related to this signal request.

If Force Liquidation wins, DC will be set to 0, liquidation will be enabled and a SF might be charged to clean the vault facility. This action might lead to some losses. The exact process will be managed by the domain teams.

If a risk assessment is demanded, TUSD DC will be set to 0, Risk will contact TrustToken and gather a report to have an assessment of what is behind the TUSD token (RWA style assessment). This might take one month and will end up with a new DC signal request.

The main impact of the vote will be our relationship with TrustToken and the new TUSD owner. No significant impact on the peg is expected whatever the outcome is.

  • No change
  • Set the Debt Ceiling to 0
  • Force liquidation
  • Ask Risk to perform a detailed risk assessment on the situation
  • Other (please comment)
  • Abstain

0 voters

The poll will be open until January, 12th.

4 Likes

setting DC to zero was part of the initial PSM-rollout-plan anyway, and I guess there is not much support to add TUSD to the PSM right now as well :wink:

1 Like

I don’t think there is a big risk right now and with a dai at peg the vault won’t get used anyway.

I believe we need to ask them first by courtesy. They have been fair and friendly to us so far.

We have been already asking them in this post, and sadly the answers have generated more confusion and insecurity than the one existing before. For some reason the new TUSD owners are no where to be found on internet, this could have an explanation and maybe TUSD owners are willing better to talk to some members of the risk team instead of making all the information publicly available here in the chat.

I do recommend that the risk team (or some other Maker representative) involve in face-to-face conversation with the new TUSD team to understand better what is going on before taking actions like “force liquidation”, and from a new risk profile we could take better decisions.

3 Likes

Quick update as only one week remains.

Currently, the consensus is to set the debt ceiling at 0M and do nothing more (neither liquidation nor assessing the situation).

2 Likes

This will move on-chain on Monday 18th January.

1 Like

The executive vote was acted on-chain and the DC of TUSD-A is now 0M so TUSD deposits are no longer possible. We still have 38M TUSD in TUSD-A. No further action was decided in this Signal Request.

4 Likes

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