Remove USDS from Stability fund

USDS is backed by the centralised entity Prime Trust. If Prime Trust goes insolvent USDS will not be redeemable anymore for 1 USD which makes it basically worthless.

This is a potential threat for the ICON DeFI ecosystem because bnUSD ist partially backed by USDS.

I suggest removing USDS from the stability fund. Maybe replace it with more USDC or with USDT?


Isn’t this the case for USDT and USDC as well? But either way it might be smart to spread our risk.

It might be worth to lower USDS and add some USDT and BUSD as options. Or perhaps only BUSD.

You are right! Those two are just much bigger and better known.

While this is true, Prime Trust is regulated in the US and has been around as a regular trust long before crypto afaik. Generally I agree we should be very careful with the stability fund and possibly lower the cap on USDS / remove it in the future. For now, I personally think it’s alright but would be open to lowering the cap / removing it.