Set the Collateral Factor of sUSD to 0 and disable the sUSD supply/borrow functionality

Discussion
1

Set the Collateral Factor of sUSD to 0 and disable the sUSD supply/borrow functionality

Proposal Overview

In light of recent market behavior and to ensure the safety of user assets and the reliability of the Wing Finance platform, we propose the following actions regarding sUSD:

Adjustments to sUSD Parameters

  • Set the Collateral Factor of sUSD to 0%

  • Increase the Reserve Factor to 100%

  • Disable sUSD Supply and Borrow functionality

Reasoning

The price of sUSD on CoinMarketCap has shown significant and irregular fluctuations, with values that deviate sharply from both oracle data and centralized exchanges, such as Gate.io. This inconsistency creates risks of inaccurate collateral valuations, unfair liquidations, and platform instability.

To protect user assets and ensure protocol reliability, it is necessary to swiftly phase out sUSD as an active asset for lending and borrowing.

Implementation Phases

Phase 1: Immediate Actions (Upon Approval)

  • Reduce the current Collateral Factor by 0%

  • Increase Reserve Factor to 100%

  • Disable Supply and Borrow functions for sUSD

2

Honestly, dropping the collateral factor to 0% feels like the right call to keep things safe from those sudden sUSD price swings.

3

I mean, no one wants unfair liquidations just because CMC, the oracle, and Gate.io can’t agree on a price.

4

The two-step rollout? Perfect — cuts risk right away but still gives folks a bit of time to move things around.

5

Just like with BUSD — shows the team is serious and consistent about risk control.

6

Taking sUSD out of the lending pool might make it harder to actually use the token.

7

If you’re sitting on a lot of sUSD, this does feel a bit strict without offering another path.

8

Honestly, pulling sUSD from the pool could cause some short-term instability.

9

Cutting off supply/borrow for sUSD should help avoid more shockwaves in the market.

10

Love that Gate.io and other markets are part of the decision — shows it’s grounded in reality.

11

Clear rules now mean less drama later, and I think everyone’s tired of drama.