# TUSD offboarding plan
AI summary
This proposal initiates the process to remove TUSD, a stablecoin, from the Aave V2 Ethereum lending platform. It aims to gradually reduce TUSD's presence by adjusting its risk parameters, making it less attractive for users to supply or borrow. This follows previous actions to freeze TUSD and lower its loan-to-value ratio, and is modeled after a successful offboarding plan for another stablecoin, BUSD.
If passed, users who currently hold TUSD on Aave V2 will be incentivized to migrate their assets to other stablecoins. The changes will make it harder to borrow TUSD and reduce the collateral value of supplied TUSD, potentially causing some users to face liquidation if they don't adjust their positions. This benefits the Aave protocol by reducing its exposure to TUSD, which is deemed a riskier asset, but may inconvenience current TUSD users.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
TUSD offboarding plan
title: TUSD offboarding plan author: Marc Zeller (@marczeller - Aave Chan Initiative), Gauntlet discussions: https://governance.aave.com/t/arfc-tusd-offboarding-plan/14008
Simple Summary
This proposal aims to initiate the offboarding process for TUSD from the Aave V2 Ethereum pool. The process will follow a similar process as the BUSD offboarding plan part I.
Motivation
TUSD has been a historic asset of the Aave ecosystem, but due to recent events, the ACI suggests consideration of its…