Background:

The related proposal for adding ETHx as collateral on the Snapshot has already been approved, see the link for details, https://snapshot.org/#/lybralabs.eth/proposal/0x8fbdfec28e04d7f6aa17f5d63200b642ed17ba92b50a7fcc45611b7ee26d8995. In response to this, the Lybra team has taken significant steps forward.

Development and Security Measures:

Following the approval, the Lybra team successfully deployed the ETHx vault contract. To ensure the highest standards of security and reliability, we engaged Halborn for auditing purposes. The audit report can be viewed here: https://github.com/HalbornSecurity/PublicReports/blob/master/Solidity%20Smart%20Contract%20Audits/Lybra_Finance_Vault_Guardian_Smart_Contract_Security_Assessment_Report_Halborn_Final.pdf

Proposal Overview:

We propose the activation of the ETHx vault contract, contingent upon approval from the community. This move is aligned with our strategy to diversify the collateral options available for minting peUSD, thereby enhancing the robustness and appeal of our platform.

Initial Implementation:

Upon approval, we will initiate the ETHx vault contract with an initial minting cap set at $50,000. This conservative approach is designed to minimize risk and allow for careful monitoring of the system’s performance with the new collateral type.

Objectives:

• Diversify collateral types to enhance the stability and attractiveness of peUSD.
• Introduce ETHx as a new collateral option, providing more flexibility for users.
• Maintain a risk-averse strategy with an initial low minting cap.

Conclusion:

The addition of ETHx as a collateral option for minting peUSD is a strategic move towards diversifying our collateral pool and offering more flexibility to our users. We believe this proposal aligns with our community’s interests and the long-term vision of our platform. We look forward to the community’s feedback and approval.