Proposal #37

Activation of USDT as a Vault collateral on Interlay

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This proposal has been turned into referendum.
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Hello everyone,

Interlay team here. Despite the USDT vaults being ready, we are calling everyone to vote NO on the current proposal as we have discovered an issue with the XCM transfers and the XCM UI that we are implementing so users can transfers USDT to and from Statemint.

Explanation of the issue:
We discovered late yesterday that our parachain's configuration of the xTokens pallet needs an additional configuration set to allow successful XCM transfers to other parachains using DOT as XCM fees.
This was found during our tests of the UI implementation to send USDT from Interlay to Statemint. The lack of a configured value for xTokens.MinXcmFee meant that the extrinsic was rejected and USDT funds could not be moved back to Statemint. (Note: Sending from Statemint to Interlay worked fine.)

For the best vault experience USDT vaults should be launched together with a safe and tested way to transfer USDT to and from Interlay.

Therefore, in order to avoid users losing funds or potentially having USDT blocked on Interlay until we deploy the fix, we ask everyone and recommend to vote NO on the current referendum.

We plan to fix XCM transfers and XCM UI and will let the community know when it is ready to submit for activation of USDT vaults again.

What happens if the referendum passes?
Nothing will happen with USDT vaults. they will be successfully activated. However, there will be no way via UI to transfer USDT to and from Statemint and transfers from Interlay to Statemint via Polkadot.js will not work and throw the same error mentioned above.



why not ausd?