Summary
This proposal recommends disabling the Supply and Borrow functions for the USDDOLD market and increasing its Reserve Factor to 100%, in accordance with the USDDOLD Sunset Plan officially introduced by the USDD team. These actions are designed to facilitate a smooth transition to USDD V2.0, reduce protocol risk, and improve capital efficiency across JustLend DAO.
Background
USDDOLD (formerly USDD) was the first-generation decentralized stablecoin issued by the USDD team. With the launch of USDD V2.0, a new stablecoin contract has been deployed, bringing substantial upgrades such as:
- Transfer of minting rights to the community;
- Optimization of collateral types and stability mechanisms;
- Enhanced flexibility, decentralization, and user security.
In response to this upgrade, the original USDD has been rebranded as USDDOLD, and a new lending market for USDD V2.0 has been launched on JustLend DAO. To support this migration and ensure the health of the lending ecosystem, the USDD team has initiated a formal USDDOLD Sunset Plan, targeting the full retirement of USDDOLD by September 30, 2025.
Motivation
The USDDOLD market has experienced a significant decline in usage following the launch of the upgraded USDD V2.0, which introduces critical improvements in decentralization, collateral efficiency, and risk control. Maintaining support for the legacy USDDOLD asset poses growing systemic risks and operational overhead, while offering diminishing value to users and the protocol.
By disabling Supply and Borrow functions and setting the Reserve Factor to 100%, JustLend DAO can proactively manage risk exposure, encourage users to migrate to USDD V2.0, and focus resources on more secure and widely adopted markets. This move aligns with the USDDOLD Sunset Plan initiated by the USDD team and reflects JustLend DAO’s commitment to sustainability, user protection, and the long-term health of the lending ecosystem.
Conclusion
The proposed actions to disable Supply and Borrow functions and increase the Reserve Factor to 100% for the USDDOLD market represent a necessary and timely step in the phased retirement of a legacy asset. These changes are fully aligned with the USDDOLD Sunset Plan and are essential for maintaining the integrity, efficiency, and long-term sustainability of the JustLend DAO ecosystem.
We strongly encourage the community to support this proposal to help ensure a smooth transition for all users, minimize risk exposure, and reinforce the DAO’s commitment to a secure and future-ready lending protocol.
Thanks for your support!
The JustLend DAO Team