Motivation

The mainnet Reserve currently holds legacy cUSDC, but the Compound cUSDC mint pathway is frozen. This blocks the Reserve from continuing to deploy new USDC through the existing strategy.

Overview

This proposal upgrades the Ethereum mainnet Reserve implementation to use Aave V3 for USDC deposits and redemptions. On execution, the Reserve redeems its remaining cUSDC, transfers the remaining USDC into Aave, and covers deployer fees. This re-enables mint functionality for the Emptyset protocol's continued operation.

Additionally, the proposal upgrades the Arbitrum Reserve to the Aave implementation. This is executed via a retryable ticket that atomically upgrades, initializes, configures, and rebalances the Reserve.

Resources

Arbitrum Reserve Code: https://github.com/equilibria-xyz/emptyset-mono/pull/12