Improve decentralization of bSTBL by swapping USDC for LUSD as an underlying asset.
Bao synths aim to be as decentralized as possible. LUSD is a far more decentralized collateral choice due to it immutable nature and pristine (ETH only) collateral. It is also battle tested, has a chainlink feed, sufficient liquidity and yield options on Aave and yearn.
- Improve decentralization of bSTBL and baoUSD
- Swap USDC to LUSD as an underlying asset for bSTBL
- While liquidity is good for LUSD, it is not as deep as DAI liquidity which could present an issue in the future. To mitigate this risk the Bao will monitor the adoption of LUSD.