Sunsetting the Auto Strategy Vaults

We’re entering the next phase of our growth cycle at USD.AI and in order to consolidate the protocol both Auto strategies for USDai and sUSDai will be sunset on November 24th.

During the last USDai cap raise, the Auto strategy vaults accepted $75 million in new deposits with a 30-day lockup and 15x Allo Points to backstop risks from the Euler Frontier USDai market. These funds ensured orderly market operations across both Arbitrum and Plasma.

With the first Pendle market maturity fast approaching, the risks associated with the Euler Frontier market have diminished due to K3 Capital taking over risk curation. Protocol controlled liquidity is no longer required and will be returned to depositors.

In preparation for this transition, the Auto strategy vaults have begun withdrawing all liquidity from exchanges and lending markets. The unwind process affects all positions within the AutoUSDai and AutoSUSDai vaults.

Allo Points Update

The 15× Allo Points multiplier associated with AutoUSDai will conclude on November 7 at the end of the 30 day lockup period. At that point, all Auto vault depositors will accrue Allo Points at the standard 10x rate.

Withdrawal Schedule

The Auto Strategy is being fully sunset on November 24th. This will affect both AutoUSDai and AutoSUSDai vaults.

We will process one round of USDC withdrawals for the Auto vault strategy before the sunset date.

The following timeline outlines the complete sunset process for the Auto strategy vaults:

• November 3 — Withdrawal opens for submissions at 11:59 UTC.
• November 6 — Withdrawal submissions close at 18:00 UTC
• November 7 — The 30-day boosted 15× Allo Points period ends for AutoUSDai. Withdrawals are available by 18:00 UTC.
• November 24 — All remaining depositors in the Auto vaults will be airdropped USDai (if in the AutoUSDai vault) or sUSDai (if in the AutoSUSDai vault).

IMPORTANT: You stop earning Allo Points immediately upon submitting for a USDC withdrawal from the Auto Vault.

Depositors who choose to receive the airdrop will earn 10x points respectively after the USDC withdrawals are processed on November 7.

WARNING: If you have deposited AutoUSDai into Euler to borrow USDC, you must withdraw your assets from the market before the airdrop. If your AutoUSDai tokens remain in the Euler vault when USDai is airdropped, you will not receive your funds.

Please remove all funds from the Euler AutoUSDai vault on Plasma before November 7th.

First Come First Serve USDC Redemptions

Only USDC held in the Auto strategy will be available for redemption. Withdrawal submissions will only be accepted to a maximum of these amounts. If USDC withdrawal requests exceed the total USDC held in the Auto vaults, redemptions will be first come, first serve.

All submissions above the maximum USDC balances held in the vaults will receive an airdrop in USDai or sUSDai on November 24.

Current liquidity amounts as of 24-Oct 6:00PM UTC:

• autoUSDai USDC balances = 17,711,046
• USDC Wallet = 1,759,352
• USDT Wallet = 178,600
• Arrakis USDC = 10,740,304
• Curve USDC = 2,019,965
• Fluid USDC = 2,012,824

• autoSUSDai USDC balances = 3,119,485
• USDC Wallet = 1,198,146
• USDT Wallet = 119,158
• Fluid USDC = 1,645,64
• Uniswap USDT = 156,535

Summary

The Auto vaults provided an efficient mechanism for automated participation during the early growth of USDai. Their sunset reflects the protocol’s shift toward direct issuance and streamlined liquidity management as it matures into its next phase of operation.