{"postId":"opengov:370","kind":"opengov","title":"HSM consolidation, part 2: restart sUSDS/sUSDe conversion","body":"# HSM consolidation, part 2: restart sUSDS/sUSDe conversion\n\n## Background\n\nReferendum [#367] delisted sUSDS and sUSDe from the Hollar Stability Module. The delisting itself completed successfully — both assets are removed and the HSM now accepts only aUSDT and aUSDC — but the conversion DCAs terminated early due to a bug in the DCA pallet: when the absolute `minAmountOut` floor becomes the binding trade limit, a failed trade surfaces a non-retryable router error and the schedule terminates permanently instead of retrying. A runtime fix is in progress.\n\nAs a result, the scheduled day-5 cleanup swept the still-unconverted sUSDS/sUSDe out of the HSM into the Treasury.\n\nThis referendum completes the original plan from the Treasury side.\n\n## What it does\n\n**At enactment — restart the conversions (from the Treasury):**\n\n1. DCA sUSDe → aUSDT: ~$500 per trade (400 sUSDe), one trade every 10 minutes, ~2.8 days total\n2. DCA sUSDS → aUSDC: ~$500 per trade (450 sUSDS), one trade every 10 minutes, ~1.5 days total\n\nBoth schedules are open-ended and self-terminate when the balances are exhausted. Parameters are adjusted from the first attempt: absolute floors sit at 95% of the current peg (wide of the ~1% spread where arbitrageurs demonstrably defend the price, so they act only as a depeg stop) while the 1% max-slippage-vs-oracle guard continues to protect each individual trade.\n\n**Day 5 (scheduled on-chain by this referendum):**\n\n3. Transfer exactly **101,244.405279 aUSDT + 101,000 aUSDC** from the Treasury to the HSM\n4. Swap a fixed **90,000 aUSDT → HOLLAR** through the HSM (1:1 mint, no price impact) — realizing the remaining protocol profit to the Treasury in HOLLAR. A fixed amount is used instead of a sweep so the step converts exactly what is intended regardless of any upstream surprises.\n\nThe Treasury retains the remainder (~5–6k aUSDT, ~3k aUSDC plus sub-trade dust) as margin.\n\n## Resulting state\n\n- HSM: aUSDT/aUSDC-only collateral, exactly 100% backed (plus the 90k aUSDT backing the step-4 mint 1:1, and it only accrues further via aToken interest).\n- Treasury: ~90k HOLLAR of additional realized HSM profit (on top of ~30k realized by the first referendum), plus a small stablecoin buffer.\n- Combined with part 1, total realized HSM profit lands at ~$120k as originally proposed.\n\n## Execution safety\n\n- Full preimage dry-run on a chopsticks fork of mainnet: all calls execute successfully.\n- The aToken transfer path and the fixed HSM swap were additionally executed against forked live state.\n- The day-5 step runs as a `force_batch`: no single failing item can block the others, and the fixed swap size caps the amount that can move in any scenario.\n","bodyFormat":"markdown","tldr":"","labels":[],"linked":[],"author":{"account":{"accountId":"0x8aee4e164d5d70ac67308f303c7e063e9156903e42c1087bbc530447487fa47f","address":"149AQApEw4Xe1DxWesqywiuGQHazbETMgWgT89WjEYFAc29y","emoji":"🍁","emojiName":"heimdall","emojiUrl":"https://cdn.discordapp.com/emojis/1005035405864869939.webp?size=32","tag":null,"identity":{"display":"lolmcshizz","verified":true,"email":"","web":"","twitter":"@lolmcshizz"},"profile":null},"legacyName":null},"authority":"subsquare","revision":0,"createdAt":"2026-07-27T11:27:06.000Z","editedAt":null,"lastActivityAt":"2026-07-27T17:17:33.000Z","commentsCount":0,"updatesCount":0,"upvotes":0,"threadKey":"opengov:370","source":{"name":"subsquare","id":"6a6740bc781cee3ac4d0590d","cid":null,"removed":false},"bannerCid":null,"banner":null,"poll":null,"locked":false,"media":{},"hidden":false,"generation":"6690c444c3e1fdf2"}