In alignment with the objectives outlined in this proposal, we intend to temporarily reduce the USDT0 reserve factor for an initial three-month period. This measure is designed to foster accelerated growth of the USDT0 market on Plasma.
This decision has been jointly agreed upon with both Plasma and Binance, given the expected substantial inflows resulting from the triparty partnership. We believe this adjustment, combined with the incentive framework proposed herein, will firmly position Plasma as the leading venue for USDT0 lending activity.
Moreover, with syrupUSDT and Ethena PTs scheduled for listing in the coming days, the demand for USDT0 is projected to increase materially. Implementing this reserve factor reduction will create the most favorable environment to capture and sustain this growth momentum.