LlamaRisk supports the proposed measures to deprecate sUSD on Aave V3 Optimism, as they effectively address key risks while minimizing disruption to users. The introduction of Synthetix’s Pool 420 has fundamentally changed the collateral dynamics of sUSD, compounding risks already heightened by its severe peg deviation and the resulting erosion of user confidence. By increasing the reserve factor to 99.9%, introducing a 10% base rate, and reducing the supply cap to 2M, the proposal encourages users to exit their positions, thereby limiting systemic exposure.
We commend @ChaosLabs for proactively addressing these challenges with a well-calibrated strategy that balances risk reduction with minimal externalities. This approach ensures a smooth deprecation process while safeguarding the protocol and its users.