Capital-efficient Stablecoin: From Sable Beta to LSD-backed Sable V2
Sable is building a truly decentralized primitive to manifest a non-custodial stablecoin USDS on Arbitrum and BNB Chain with just one goal:
To be the number one reformative stablecoin backed by Ethereum LSD
Behind this goal, our vision is to benefit our users by embracing yield maximization and capital efficiency in our stablecoin USDS. Our journey has been like a roller-coaster, and this is how we began:
Our journey begins on the BNB chain. As a group of BNB veterans, we are frustrated that stablecoin is not stable anymore. The constant depegging due to regulatory impact should not be the destiny of stablecoin. We conceptualize the idea of a protocol which generates stablecoin that doesn’t have to rely on any centralized type of assets. In this case, middlemen or custodianship will be eliminated from the equation, minimizing any controllable factors which could be easily manipulated by any third parties.
Birth of Sable Beta
The birth of Sable is the beta version, providing all the essential functions of $USDS, including collateral deposit, USDS minting, liquidation with the stability pool and, of course, redemption.
Our beta will accept only BNB as a collateral. Depositing BNB on Sable Beta will grant you access to the very first experience of minting the immutable stablecoin in USDS.
The pathway is very direct: BNB is used as collateral for borrowing USDS, a stablecoin with a peg maintained by redemption and debt pay off.
Sable Betawill be LIVE soon after our incentivized testnet.
So what’s after?
Sable V2 Mechanism
We have dropped the latest development of Sable V2 before ⬇️
Yet how does it work?
Other than being an advanced version of Sable beta, V2 design will be upgraded to give higher yield optimization and cost efficiency with a more retail friendly interface.
To cover the market need, Sable V2 will be launched on both Arbitrum and BNB Chain, providing the unique experience to users, using LSDfi as multi-collateral.
Locking for veSABLE
SABLE token holders will be able to lock their SABLE LP tokens for veSABLE, which will be the key token used for gauge voting in deciding the emission of SABLE to different LSD collateral.
The implementation of vote locking and governance mechanism will grant the community control over the emission allocations, which would motivate more users to lock SABLE for future yield, hence minimizing SABLE circulation and enhancing price stability.
SABLE LP & Stability Pool in V2
Staking on Sable would be different from other protocols — instead of using single-sided protocol tokens, we opt for LP tokens to achieve capital efficiency. Other than earning veSABLE for gauge voting, parallel LP-ing on DEX would also provide users with yield from trading fees on DEX as well.
Other than such, our stability pool would also accept LP token with partnering DEX, enabling additional pathways to earn liquidation gains, and SABLE LP trading fees
This could increase the cost effectiveness on SABLE emissions, as you can see from figure above, all emissions via multiple pathways will eventually be put back into a single stability pool, which will buy back debts when collateral ratio falls. However, emission will be adjusted gradually based on the usage which will add value for early investors who support our sustainability in the SABLE ecosystem.
You & Sable Finance
You are our key in Sable Finance. As a user, USDS is one of the best stablecoin which could generate its users a maximum revenue return thanks to consolidated liquidity. Protocol is designed to play a fair game, where early investing in SABLE would ensure a long-term and sustainable return on top of your yield return from LSD staking.
As of the protocol, your adoption drives a higher rate in stability and sustainability. It minimizes emission waste as it is driven by the community and reduces selling pressure on SABLE, which is essential in maintaining the protocol at equilibrium.
Closing
It is not an attempt but an execution of decentralization. We are sick of any over power controlling and manipulating our assets. Sable would like to provide a platform for the community, where everyone would be able to enjoy and access the benefits of an immutable stablecoin backed by LSD collateral.
