Summary

It is proposed, based on the recent discussions within [RFC] Arbitrum USDC Vault next steps (Dealing with USDX bad debt) that the Silo susdx/usdc (127) market) is removed from the Arbitrum USDC Vault using sweep via the Timelock.

This action would remove the vault, socializing losses for those remaining in the Vault. At the time of this SIP, 227k USDC liquidity remains in the Vault, with 1.5M USDC bad debt.

It is expected that should this vote pass, by the time of it’s execution, there is likely no more liquidity remaining in the Vault.

Specification

On Arbitrum, temporarily set ConfigurationManager.raft to the Timelock to enable Ark.sweep(tokens) to transfer specified tokens to the Timelock, then restore raft to the Raft contract.

Target Chain

Arbitrum

Contracts

• ConfigurationManager: 0x8ae7fbAeCfBDb21c28b1854272BB7A3a813e2A66
• Timelock: 0x447BF9d1485ABDc4C1778025DfdfbE8b894C3796
• Raft (restore): 0x2E6FBcefA0480cF9f7920d98804A9BD72e1eFEc9
• Ark (sweep target): 0x54749c15751137Be18768288D3945C4934fCb800

Tokens

• 0x2433D6AC11193b4695D9ca73530de93c538aD18a

Actions

1. Set raft to Timelock in ConfigurationManager
2. Ark.sweep(tokens) — executed by Timelock (as temporary raft)
3. Restore raft to Raft in ConfigurationManager

##Risk Assesment It is not considered to create any risk to the protocol or supporting contracts.

##Voting A YES vote for this SIP will remove the Silo susdx/usdc (127) market from the Arbitrum USDC Vault, using sweep via the TImelock

A NO vote will result in no changes to the Arbtirum USDC Vault, expecting the vault to be left as is, and rely on the keepers to try and recover any funds that may, at some point, be deposited back into the Silo market.