Motivation

When DSU was deployed on Arbitrum, the chain didn't have a native implementation of USDC. Instead USDCe, a bridged version of USDC was used. While this served as a good proxy for the underlying USDC, Circle has since launched native USDC on Arbitrum and liquidity conditions have improved to a point where it makes sense to transition to the native asset.

Overview

This proposal switches the USDC address used by the reserve to the native USDC deployment to create a better user experience for DSU users on Arbitrum. It also introduces a hook to allow for 1:1 swapping of USDC.e to USDC to perform the migration.

Migration Plan

Once this proposal is executed, the Arbitrum reserve will start using USDC for deposits and redemptions.

Resources

• Reserve Code: https://github.com/equilibria-xyz/emptyset-mono/pull/10
• Audit report: https://audits.sherlock.xyz/contests/254/report