# 2024 Q1 Plug-in Upgrade Step 2 
 Unwraps Compound v2 USDT vault.

# 2024 Q1 Plug-in Upgrade Step 2 

# 2024 Q1 Plug-in Upgrade 
 - Upgrade trading plugins
- Upgrade collateral plugins
- Swap out aave-v2 and compound-v2 USDC for aave-v3 and compound-v3 USDC
- Increase redemption throttle to $2.5m and 12.5%

# 2024 Q1 Plug-in Upgrade 

# Max Trade Slippage Reduction to .5% 
 Summary

Change Max Trade Slippage from 1% to default value of .5%.

Abstract

Max Trade Slippage is the percentage value the describes the maximum deviation from oracle prices that any trade that the protocol performs can clear at. Slippage permits additional price movement beyond the worst-case oracle price. 1% slippage means if oracles quote the price for USDT at $1.00 per USDT, the protocol will allow an auction to clear at $.99 per USDT, in the current state. I am proposing to half this possible discrepancy, to $.995 per USDT.

Problem statement

Clearing a trade of an asset at 1% deviation from the oracle price allows for those that participate in the auction to, in the limit, extract 1% of the total collateral value being auctioned from the RToken stakers. $3.75 million of USDT (if eUSD is at 7.5 million circulating supply), means that the auction participants can extract $37,500 from the RSR stakers (this is assuming there is no competition).

Rationale

I would like to change the Max Trade Slippage to the default value of .5%. 1% is too great of a value for upcoming eUSD collateral auction.

Risks

It is the default value, proposed by the Reserve team. There should be no risk to this.

# Max Trade Slippage Reduction to .5% 

Reserve Protocol

The Reserve Protocol is a platform which enables anyone to create yield-bearing, decentralized, and asset-backed currencies (RTokens). RTokens provide an alternative to inflation-prone currencies, empowering people to maintain their purchasing power over time and across borders

Ethereum	$160.11m
Base	$9.04m
Arbitrum	$295,516

Staked	$29.92m
	$4.96m
	$112,216
	$112,216
	$13.56m

Reserve Protoco...
(RSR)

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Staking	$29.92m