RFC: Add rlUSD to Euler Prime

Risk RFC
1

Add rlUSD to Euler Prime

Proposal: Add rlUSD to Euler Prime

Author

Trident Digital

Date

2024-12-23

Summary

This proposes onboarding Ripple’s rlUSD stablecoin to Euler Prime on Ethereum. rlUSD has received NYDFS approval and is anticipated to play a key role in the stablecoin ecosystem. With rlUSD now transferable and a circulating supply of 52.9M as of December 15, 2024, this proposal seeks to list rlUSD, pending a Chainlink Oracle integration.

Onboarding rlUSD will help diversify collateral options, increase capital efficiency, and attract a broader user base to Euler Prime.

Specification

Asset Details

Risk Parameters

Initial Risk Parameters for rlUSD

Parameter Value
Liquidation Penalty 10%
Supply Cap $999.96M
Reserve Factor 10%
Utilization Target 88%
Bad Debt Socialisation Yes
Borrow Cap $879.96M

These parameters are subject to feedback from Risk Service Providers and will be updated as needed.

Motivation

Why Add rlUSD?

  • Regulatory Approval: rlUSD has received approval from NYDFS, adding credibility and reducing compliance risks.
  • Growing Circulating Supply: With 52.9M rlUSD in circulation, adoption is ready to begin.
  • Stablecoin Diversification: Adding rlUSD enhances the diversity of stablecoin options on Euler Prime.
  • Strategic Integration: Supports Euler’s goal of becoming a leading platform for capital-efficient lending and borrowing.

Oracle Integration

  • Pending Chainlink Oracle integration.
  • Temporary fallback pricing mechanisms may be considered if required.

Governance and Community

Trident encourages active participation and feedback from the DAO and community members to ensure this proposal aligns with the long-term vision of Euler Prime.

Copyright

Copyright and related rights waived via CC0.

2 Likes
2

We are very much in support of adding rlUSD to Prime. On the assumption that it quickly becomes a liquid asset across DeFi, ot promises to add stablecoin diversity to the cluster, giving users more options for use as collateral and for borrowing against their crypto-native assets. The suggested supply cap is certainly too high for an initial deployment, but this could be revised down to a more modest configuration initially, such as $25m, and raised as needed as the asset becomes more liquid.