[Direct-to-AIP] pyUSD Parameters Optimization

Governance
1

title: [Direct-to-AIP] pyUSD Parameters Optimization
author: @TokenLogic
created: 2025-09-06

Summary

TokenLogic proposes optimizing the pyUSD parameters on the Ethereum Core v3 instance.

Motivation

This publication proposes aligning the Reserver Factor and Uoptimal for the pyUSD Reserve with various other stables ahead of a potential incentive campaign from PayPal.

The key changes include:

  • Adjusting pyUSD Reserve Factor (RF) from 20% to 10%: With <$15M in liquidity within the Reserve, decreasing the RF routes a larger portion of the interest paid by users who borrow pyUSD to users who deposit pyUSD.
  • Adjusting Optimal Utilization (Uoptimal) from 80% to 90%: We recommend to increasing the Uoptimal of pyUSD, to better reflect the borrow and supply dynamism for these assets.

Specification

The following pyUSD Reserve parameters are to be updated:

Asset RF Current RF Proposed UOptimal Current UOptimal Proposed
pyUSD 20.00% 10.00% 80.00% 90.00%

Disclosure

TokenLogic does not receive any payment for this proposal.

Next Steps

  1. Using the Direct-to-AIP process, submit AIP(s) for vote.

Copyright

Copyright and related rights waived via CC0.

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