Simple Summary

This SCCP proposes to move the USDe held on the ethereum wrapper to the USDe wrapper on optimism.

Abstract

Currently 5m USDe are held on the ethereum wrapper, while most of the trading activity is on optimism. This SCCP proposes to move the USDe to the USDe wrapper optimism, which is closer to traders. That along with USDe being instantly bridgeable via the stargate bridge, gives traders instant access to liquidity and alleviate pressure on the sUSD peg. This is done by the protocol minting sUSD to release all the USDe on ethereum, followed by sending the USDe to optimism and wraping that USDe on the L2 wrapper. This is done along with raising the cap of the USDe wrapper on optimism to 15m sUSD and lower the wrapper cap on ethereum to 0. After this is performed the minted sUSD is burned on optimism, ensuring that debt remains unchanged on stakers.

Motivation

The proposed changes are in light of improving the traders user experience on optimism, where they can get instant access to liquidity via the USDe wrapper on optimism, instead of waiting for the 7 day relay the sUSD from L2 to L1.

Copyright

Copyright and related rights waived via CC0.