# [Gauntlet] – sUSDC Listing on Euler Unichain

## Summary

Gauntlet recommends the eventual onboarding of sUSDC to Unichain, contingent upon successful oracle integration and the emergence of demonstrable, sustained liquidity. Should the community choose to proceed, Gauntlet recommends the following:

This proposal provides Gauntlet’s parameter recommendations for onboarding **sUSDC** as a collateral-only asset on the Euler Unichain market.

sUSDC is a yield-bearing stablecoin issued by Spark, backed by diversified collateral and redeemable 1:1 for USDC via Spark’s Peg Stability Module (PSM).

Given its stable design, growing adoption, and conservative usage expectations, we support collateral-only onboarding with a **4.2 M** supply cap and **93 % LLTV / 91 % Borrow LTV** configuration.

## Background
sUSDC is the ERC-4626 share token for deposits into Spark’s USDC Savings Vault. It earns yield sourced from diversified strategies, including:
- **Tokenized T-bills** (e.g., BlackRock BUIDL, Superstate USDTB)
- **Over-collateralized lending**
- **DeFi money markets**

sUSDC maintains a 1:1 redemption via Spark’s PSM and is currently deployed across multiple L2s.
Total vault AUM is **\$3 B+**, with **\$351 M** allocated to sUSDC.
[Spark Savings Vault data »](https://data.spark.fi/savings)

## Current Market Coverage

| Token | Prime | Yield | Base |
|---------|:-----:|:-----:|:-----:|
| **sUSDC** | - | - | - |
| **sUSDS** | Collateral | Borrow+Collateral | Collateral |

- **sUSDC** is not borrowable or collateralized in Euler Prime, Yield, or Base.
- **sUSDS** is borrowable in Euler Yield and collateral-only in Euler Base.

## Parameter Recommendations (Unichain)

| Parameter | Recs |
|-------------------------|:--------:|
| **Borrowable** | No |
| **Collateral** | Yes |
| **Supply Cap** | 4.2 M |
| **Interest Rate Model** | N/A (non-borrowable) |

### LTV Recommendations
Collateral | Debt |LLTV | Borrow LTV |
|:-------------|:-------|-------:|-------------:|
| sUSDC | USDC | 0.93 | 0.91 |
| sUSDC | USDT0 | 0.93 | 0.91 |

Note: Gauntlet requests more details on the oracle the team is planning to use as there was no oracle mentioned in the original proposal.

## Rationale

1. **Supply Cap**
Pro-rated from the \$21 M sUSDS cap on Euler Base Vault, based on USDC’s ~20 % share of total sUSDC compared to sUSDS → 20 % × \$21 M = **\$4.2 M**.

2. **Collateral-Only**
sUSDC is currently not borrowable on any chain. Given its smaller AUM compared to sUSDS and lack of borrow demand, we recommend not enabling borrowing at this time.

3. **LTV Configuration**
93 % LLTV / 91 % Borrow LTV mirrors conservative settings used for comparable stablecoins. This ensures liquidations only occur under extreme price moves, preserving peg integrity and limiting protocol risk.

4. **IRM**
As a collateral-only asset, no interest rate model is needed. Since this is a new asset in all networks, we recommend sUSDC as a collaterized asset for now

## Next Steps
- Monitor market adoption and usage behavior following deployment.
- Revisit supply caps and broader functionality as the Unichain sUSDC market matures and onchain liquidity is readily available.

We welcome community feedback.