Summary

• Enable USDC and DAI to be borrowable in isolation mode
• Grant emergency admin role to the Seamless protocol Guardian

Context and motivation

Discourse link.

Chaos has previously recommended that USDC and DAI be borrowable by isolation mode collateral assets. This was never implemented by Seamless governance. Now that Seamless has recently listed AERO as an isolated collateral asset, this discrepancy has become apparent. This proposal seeks to remedy this so that AERO (and future isolation mode collateral assets) may be used to borrow USDC/DAI as intended.

In case of emergency, the Seamless protocol Guardians should be capable of pausing the lending pools. This is generally accepted as best practice. More details on the Seamless protocol Guardian can be found here.