Scaling USP: treasury operations and liquidity management

[Biaf]

Summary

A proposal to approve treasury operations supporting the expansion of USP and sUSP across the Ethereum DeFi ecosystem

Background

Recently @Teo summarised the growth roadmap of USP, sUSP, Credit Vaults, and PAR

@Teo

Scaling USP: Credit Yield, Repackaged

The largest and most liquid asset class globally is fixed income – valued at over $190 trillion. This is where sovereigns, pensions, and insurers concentrate their capital.. A savings product denominated in yield-bearing dollars is not only intuitive but structurally inevitable.

This is where USP enters the equation.

Pareto is now positioned to serve this next generation of digital dollar demand, delivering the only dollar-denominated product that aggregates credit-based real return at scale, while preserving underwriting standards familiar to traditional asset managers. What makes USP unique:

• It combines two of the only DeFi-native, scalable sources of credit yield (onchain credit lines and curated underwriting).
• The return stream shows a weak-to-negative correlation to crypto beta, making it attractive as a portfolio diversifier.
• The underlying credit exposure is composed of institutional-grade borrowers, allowing for transparent underwriting and risk assessment.

By consolidating credit market returns into a single, dollar-denominated product, USP and sUSP offer institutional allocators a streamlined path to access onchain credit yield – without needing to manage exposure across fragmented protocols or assess dozens of risk primitives individually.

We expect significant inflows over the next months as both:

• Traditional finance migrates from ETFs into higher-yielding digital dollar products,
• Fintech/payment platforms begin embedding yield-bearing stable assets into consumer-facing flows.

Rather than compete head-on with fintechs, our approach is to embed USP/sUSP into third-party protocols – especially where payment, settlement, and savings meet.

Every DeFi protocol today that touches dollars can be structurally improved by rebuilding around sUSP. To accelerate this adoption, we are actively supporting integrations with major DeFi protocols across overcollateralized lending and fixed-rate derivative infrastructure, ensuring that sUSP becomes the default stable primitive across both DeFi and institutional rails.

Proposal

This proposal seeks approval to allow the core team to use DAO treasury funds to bootstrap new USP-sUSP markets being launched in collaboration with DeFi partners on Ethereum.

To date, the team has seeded two markets using a total of 120,500 USDC from the operational budget held in the Ethereum multisig
0xFb3bD022D5DAcF95eE28a6B07825D4Ff9C5b3814:

1. Balancer USDC-USP AMM pool with 51,000 USDC (Tx 1, Tx 2)
   
   
2. Napier sUSP PT-YT market with 69,500 (Tx)
   
   

Three additional markets are currently being prepared for deployment. Each will require ~100,000 USDC in seed liquidity, for a total of 300,000 USDC.

Including the already deployed funds, this brings the total required to 400,000 USDC, which this proposal seeks to transfer from the DAO Treasury to the Ethereum multisig.

Implementation

1. Transfer 400,000 USDC (or equivalent) from the DAO Treasury to the Ethereum multisig.
2. Upon deployment of new markets, the allocated bootstrap liquidity will be used to mint USP and stake it into sUSP as needed.
3. The new markets will be seeded with the prepared liquidity.
4. The resulting LP tokens will be transferred back to the Ethereum multisig for safekeeping.

Next steps

We encourage the community to provide feedback and suggestions to ensure this plan aligns with the DAO’s and its tokenholders’ best interests.

We are going to open the temperature check soon to ensure the treasury activity is voted on.

[Biaf]

Temperature check voting

The voting phase to approve the treasury operations to expand USP on Ethereum starts now

• For - Agree with the USP liquidity expansion plan and budget
• Against - Disagree with the USP liquidity expansion plan and budget
• Abstain - Discuss more the USP liquidity expansion plan and budget

Voting poll: HERE

Poll will close on 2025-06-13T11:00:00Z

[Biaf]

Voting results

Temperature Check passed

The treasury operations to scale USP have been approved and the needed transfers will move funds from the DAO treasury to the team multisig.

Voting option	Votes	Distribution
For	591,700	100%
Against	0	0
Abstain	0	0